First Time Home Buyers Incentives In The Blue Mountains
First Time Home Buyers Incentives In The Blue Mountains
It was my pleasure to be able to help a few first time buyers land their first home… yes… in THIS MARKET! If you are just starting your research also be sure to get my First Time Home Buyer step by step Guide – packed with everything from contemplating homeownership, tips and more all the way to closing day and beyond. If you are a First Time buyer, come along, take my hand, let’s discover all the different and wonderful first time home buyer incentives in The Blue Mountains. There are many opportunities, depending on your eligibility that you have available to you when it comes to purchasing your first home! Today we will look at The Home Buyers Plan, The First Time Buyer Incentive, The Blue Mountains Down Payment Assistance Program, Grey County Affordable Housing Homeownership Program, Ontario Land Transfer Tax Refund, and the First Home Savings Account, which can help you reach your goals of homeownership.
HBP – The Home Buyers Plan
If you are eligible, The HBP allows you to withdrawal up to $35,000 (tax free) from your RRSP (Registered Retirement Savings Plan). You have 15 years to pay back the amount you withdrew. Learn more about The Home Buyers Plan and if you are eligible here by clicking here.
The First Time Buyer Incentive
The First Time Buyer Incentive (if you are eligible), is a shared equity mortgage with the Government of Canada. The First Time Buyer Incentive is 5% of the purchase price of an existing home or 5%-10% for the purchase price for a new-construction home. With this shared equity mortgage through the First Time Buyers Incentive, the government offers you financing without interest. Therefore helping to reduce your monthly mortgage payment, and without increasing your down payment. Keep in mind: You will need to repay the incentive after 25 years, or when you sell the property. You can also repay it at any time without any prepayment penalty. The property’s fair market value at the time of repayment will determine the repayment amount. Check out if you are eligible for the First Time Buyers Incentive here.
The Blue Mountains Down Payment Assistance Program
The Town of The Blue Mountains is currently offering an interest free loan of up to 5% of the purchase price, as long as the purchase price does not exceed $400,000. As a first time buyer looking to purchase a home in The Blue Mountains in order to qualify there are a couple requirements… For the Down Payment Assistance Program you must: be a first time buyer looking to buy and reside in the home you purchase in The Town of The Blue Mountains, Do not have assets greater than $100,000, a maximum household income of $100,000, and can qualify for a mortgage without a co-signer. For more information on The Blue Mountains Down Payment Assistance Program click here. *Note this cannot be combined with The Grey County Affordable Housing Homeownership Program.
The Grey County Affordable Housing Homeownership Program
Grey County offers renters who currently reside in Grey County with a loan, up to 5% of the purchase price in order to assist them in purchasing their own home. This program assists eligible renters in the purchase of a home that does not exceed the purchase price of $423,328. Gross household income cannot exceed $$82,300. Applicants must be eligible for a mortgage without a co-signer, among other eligibility requirements. For more information, important dates, and eligibility requirements click here. *Note this cannot be combined with The Blue Mountains Down Payment Assistance Program.
Ontario Land Transfer Tax Refund
When you purchase land or an interest in land, you are required to pay a land transfer tax. To be eligible for the Ontario Land Transfer Tax Refund you must qualify as a first time home-buyer, (so never having purchased a home, interest in land, or purchased a property anywhere else in the world). You must also be at least 18 years of age, be a Canadian citizen and permanent resident. Click here for more information and Check here for First Time Home Buyer Calculator info. The Ontario Land Transfer Tax Refund only applies if you are purchasing a home in Ontario. If you are looking at purchasing a home in Toronto, please note there are different rules there… Click here for more information on Toronto. Another thing to note is if you are planning on purchasing your first home with the help of a parent. For Example: Where a parent who is not a first time homebuyer, and a child who is a first time homebuyer, purchase a home with equal 50/50 interests. The child may only claim a refund of 50% of the Land Transfer Tax Refund. The child’s claim cannot exceed 50% of the maximum allowable refund.
The First Home Savings Account
As of April 1 2023 The First Home Savings Account (FHSA) is available to qualifying individuals. The FHSA is a registered plan that allows prospective first time buyers to save tax-free for your first home! In this account you are able to contribute up to $8,000 tax-free per calendar year (in 2023). To qualify you must be 18 years old AND a resident of Canada AND a First Time Home Buyer: See if you are eligible here! You will be required to close the account at the earliest occurrence of: 15 year anniversary of opening the FHSA or you turn 71, or the year following your first qualifying withdrawal. Withdrawals from your FHSA are defined and broken down here. Learn even more about the First Home Savings Account from the Government of Canada Website!
As a first time home buyer I know it can be nerve racking to sort through all the steps to buying your first home, but believe me – it’s worth it! If you choose Builds By The Bay Real Estate Services, I, Trish Duncan am here to help and walk you through the buying process, prepare you for the offer and help you get your first home! Get my First Time Home Buyer Guide packed with step by steps + resources here! After looking at The Home Buyers Plan, The First Time Buyer Incentive, The Blue Mountains Down Payment Assistance Program, Grey County Affordable Housing Homeownership Program, Ontario Land Transfer Tax Refund, and First Home Savings Account. I hope this blog helped shed some light on what first time home buyer incentives in the Blue Mountains you have at your disposal. Now let’s find your first home!