Are you looking to buy your first home in Canada? Ready to move to your freshly bought new house? If these things are in your mind as a buyer then after eyeing on the property you desire as your home you need to understand how to qualify for first-time home buyer programs in Canada. Canada is a growing and developing economy and it has increased demands for home buying in its real estate market. It is always good for the buyer to prepare a solid plan for purchasing their first home in Canada.
It’s not always about getting a negotiated amount on the property a buyer is looking for but it is also important to learn what are the first-time homebuyer incentives in Canada because eventually, they will be a bigger help when it comes to making the repayments for the purchased property.
Government grants for homebuyers in Canada are crucial and beneficial when it comes to purchasing the first property in the Canadian real estate market. This blog will sum up some of the important government incentives provided to first-time homebuyers that can ease their financial burden after the purchase.
Important Canadian Homebuyer Assistance Programs for First-Time Purchases in Canadian Real Estate
It is important to financially secure your budget before purchasing your first home. Even after considering all the factors for purchasing the home the most important aspect that requires attention is to understand some affordable housing programs for first-time buyers that can help in reducing financial stress even after purchase.
- Home Buyer’s Plan (HBP): When a first-time buyer wishes to buy a new house they think about a down payment. First-time homebuyer tax credit under this program allows them to pull a minimum amount of downpayment from their RRSP savings tax-free and the minimum amount is 60,000 $ that can be drawn as a down payment tax-free. So, if a buyer and their partner are willing to make a purchase together then they both can draw 1,20,000 $ as a downpayment for their first purchase.
- BC Home Owner Grant: If you are looking to purchase your first home in Canada then keeping this grant in mind is very important. This comes under the best government incentives for first-time buyers because once the buyer is done purchasing their first house BC home grant will give the buyer a reduced amount of property tax that is paid every year. For example, if the buyer’s house value is up to 2,150,000 $ then the grant will offer them a deduction of $770 in property tax and if they are seniors, veterans, or people with disabilities then the rebate will be $1,045 for the same.
- BC New Housing Property Transfer Tax Exemptions: If a buyer is ready or thinking of buying a newly built property in this new year of 2025 then this benefit can be utilized by the buyer under the first-time buyer program 2025 because it is effective from 1st April 2024 which allows the buyer to get exempt from property transfer tax if their new built house is under the value of 1,100,000 $ to 1,150,000 $ in Canada.
- First-Time Home Buyers’ Tax Credit ( HTBC): While purchasing the house it comes to the mind of buyers many times that there will be some extra costs situated with paperwork trails that can hit their pocket. But if buyers are aware of the first-time home buyer tax credit then they can claim the first tax credit up to $1500 which helps them ease extra costs situated with property purchase which helps them lower their finances.
Conclusion
A first-time buyer can also check a few downpayment assistance programs in Canada to avoid financial burdens. If a buyer is looking to make their first purchase it is really important that they seek the property but also seek these government incentives which can help even after purchasing the home in repaying cycles over a long period.
