First Time Home Buyers

The process of buying your first home doesn't have to be overwhelming. You are about to buy the biggest asset you will ever purchase and the more you know, the better your decisions will be.

Step #1:  Get Your Finances In Order

Are you financially ready to buy your first home? Careful budgeting not only about your current financial considerations is important, but also about your future costs. When buying a home, you must consider the following costs:
  • Closing Costs:  downpayment, taxes, moving expenses
  • Ongoing Costs: mortgage payments, property taxes, utility bills, insurance payments, condo fees, maintenance costs
  • Major Repairs:  that may come up when you least expect it, new roof, HVAC

How much do you need for a down payment towards the purchase of a home?
It depends on the purchase price of the home. A down payment is the amount of money that you put towards the purchase of a home. The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the remaining price of the home.

What's the minimum down payment towards the purchase of a home?

  • if the purchase price of your home is $500,000 or less, the minimum downpayment is 5%
  • if the purchase price of your home is between $500,000 and $999,999, the minimum downpayment is 5% for the first $500,000 and 10% for the portion of the purchase price above $500,000
  • if the purchase price of your home is $1,000,000 or more, the minimum downpayment is 20%

 

Mortgage Default Insurance

If your downpayment is less than 20%, mortgage default insurance is mandatory as it protects lenders if a borrower stops making payments and defaults on their mortgage. Your default insurance premium is added to your mortgage amount and paid off over the life of your loan. Please visit CMHC  Mortgage Insurance Calculator for more information.


For more information about our Home Buying services visit BUYING A HOME.

To help you with your first time home buyer journey, we have:

We can also assist you with recommending a mortgage specialist. Feel free to contact us for a recommendation.


First Time Home Buyer Programs

Home Buyers Tax Credit

The First Time Home Buyer Tax Credit is a non-refundable tax credit that helps home buyers recover closing costs such as legal expenses and inspections. 

First-time home buyers can claim up to $5,000 for the purchase of a qualifying home on their personal tax return on the year of purchase.

To be eligible, neither you and your spouse or common-law partner must not have owned and lived in another home in the year of the purchase or in any of the four previous years.  

If you have a disability, you are eligible for the disability tax credit.

 You are also eligible for the disability tax credit if  you bought the house to improve accessibility for someone who is disabled, you do not have to be a first-time home buyer.

RRSP Home Buyers Plan

The Home Buyers' Plan (HBP)  is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

To be eligible, you must be first time home buyer and have a written Agreement of Purchase and Sale to buy or build a qualifying home for yourself

You are also eligible you have a written Agreement of Purchase and Sale to buy or build a qualifying home for a related person with a disability, or to help a related person with a disability buy or build a qualifying home.

You must intend to occupy in the qualifying home as your principal place of residence within one year after buying or building it. If you buy or build a qualifying home for a related person with a disability, or help a related person with a disability buy or build a qualifying home, you must intend that that person occupies the qualifying home as his or her principal place of residence.

Land Transfer Tax Refund

The Land Transfer Tax Refund ( LTT) allows first time home owners who qualify to receive a refund of the land transfer tax.

No land transfer tax would be payable by qualifying first time home buyers Ontario on the first $368,000 of the value of the consideration for eligible homes.

First time home buyers of homes greater than $368,000 are eligible to receive a maximum refund of $4,000.

To be eligible for the refund, you must be at least 18 years of age,  and cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. 


Get In Touch

Mirjana Spehar

Phone: 9056371700

Email

Office Info

Right At Home Realty Inc.

5111 New St.  Burlington,  ON  L7L1V2 

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