First Time Home Buyers

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We specialize in finding the best and lowest interest rates for first time home buyer mortgages. 

We get it! It’s your first home and you want the experience of owning your first home to be a great one – simple, easy, hassle free, and with peace-of-mind knowing you’ve got the best rate on your first mortgage of your dream home. 

What are the most affordable options for first time buyers like me?

Thankfully, first time buyers have a number of first-time home buyer programs available to you to help them enter the market. Here are a few of the options we’d explore with you, to find the best one based on your financial needs:

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) is a program in Canada specifically designed to assist first-time homebuyers in obtaining a down payment for a home.

This plan allows individuals to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) tax-free to use towards purchasing or building a home. The HBP provides a great opportunity for those who may not have enough savings for a down payment or are struggling with the initial costs of buying a home. 

This program offers flexibility and financial support, as the withdrawn amount from the RRSP is not included in taxable income. Additionally, participants have up to 15 years to repay the withdrawn amount without incurring any penalty or interest fees.

With a higher down payment, your mortgage amount is lower, resulting in access to more lenders and hence a better mortgage rate and reduced monthly payment.

First-Time Home Buyer Incentive Program (FTHBI)

The First-Time Home Buyer Incentive program was launched by the government of Canada and is aimed at supporting young individuals and families to purchase their first home.

This program offers a helping hand by lifting the financial burden of a down payment. By providing a shared equity mortgage, the government is allowing buyers to reduce their monthly mortgage payments, making home ownership more accessible. 

A government shared equity mortgage is a type of mortgage in which the government provides financial assistance to help individuals or families purchase a home. This program enables homebuyers to obtain a larger loan by sharing the equity in their home with the government. The government contributes a certain percentage towards the purchase price of the property, which reduces the amount of money the homebuyer needs to borrow from a traditional mortgage lender. The government then holds a stake in the property’s value and shares in any potential increase or decrease in its value over time. 

This option also provides you with a higher down payment, resulting in access to the best lenders with the lowest interest rates.

Low Interest Mortgage Programs

Low interest mortgage programs in Canada are initiatives designed to help Canadians purchase homes with affordable financing options. These programs aim to alleviate the burden of high mortgage rates by offering lower interest rates to eligible borrowers.

One example of such a program is the Canada Mortgage and Housing Corporation’s (CMHC) First-Time Home Buyer Incentive. This program provides shared equity mortgages to first-time home buyers, enabling them to reduce their monthly mortgage payments and make homeownership more accessible.

The CMHC also offers the Affordable Housing Loan, which provides low-interest loans to affordable housing projects that meet certain eligibility criteria.

Additionally, provincial governments in Canada also offer various low interest mortgage programs tailored to their respective regions. These programs often have specific requirements and qualifications, but they provide valuable opportunities for Canadians to achieve their dreams of homeownership while minimizing financial strain. 

Other helpful incentives for first-time home buyers

First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit (HBTC) is a program designed to assist first-time homebuyers in Canada. It offers a tax credit of up to $750 for eligible individuals who have purchased a qualifying home. This credit serves as a financial incentive to help alleviate some of the costs associated with buying a home for the first time.

To be eligible for the HBTC, individuals must meet certain criteria, including being a Canadian resident and having purchased a qualifying home. The home must also be used as their primary residence.

The tax credit can be claimed on the individual’s income tax return and can provide a significant benefit in reducing their overall tax liability. It is important to note that the HBTC is a non-refundable credit, meaning it can only be used to reduce taxes owed and cannot result in a tax refund. 

Which First Time home buyers option is best for me?

We’re glad you asked! 

The first thing we’ll do is sit down and understand what your financial situation and goals are. These include:

  • Your current down payment
  • Any debts
  • Any other savings
  • Potentials financial assistance from loved ones
  • And more…

Once we know these, we’ll be able to determine which of these options you may be eligible for, and then determine the best lenders for your first mortgage.

And don’t worry, we’ll walk you through all these options step by step, ensuring you 100% understand what’s best for you!