Mortgage Help - First Time Home Buyers
Financing a home purchase is perhaps the primary hurdle faced by prospective purchasers. The onerous requirements for perfect credit scores, high income, big downpayments, and collateral on home loans has kept millions of Canadians from buying a home. The introduction of a number of First Time Home Buyers programs by Federal, Provincial and regional governments means it's never been better for first time homebuyers. By having experienced consultants to help you in this process will save your time, stress and money.
First Time Home Buyer Information
Questions?
Should I hire an experienced broker to buy a home?
A real estate agent has faster access to new homes for sale in comparison to the MLS llistings. By the time you see a home on Mississauga MLS listings, it may already be sold or no one likes the home. An experienced agent knows more about the neighbourhood thus helping you avoid situations that aren't best for you and your family.
Won't a Real Estate Agent take a big commission?
The real estate agent is normally paid only by the property seller. If you paid a commission to have someone find the ideal home, it will be worth it. On a private Mississauga listing, you can have us make a offer on that private sale listing and have the commission worked in the price. The buyer can also pay the commission and roll it into the mortgage.
How do I learn more about First Time Buyer's Programs.
Contacting our Mortgage Specialist who knows everything you need to know about first time buyers programs is the best way to get the right information and advice.
How much do I need for a downpayment?
Typically, you need about 5% of the purchase price as a down payment, however, if you have more, it may be more attractive to the buyer and makes it easier to get a mortgage. Ask about preapproved mortgages.
Should I Try to Go it Alone with a For Sale By Owner Opportunity?
The risks of buying a home for sale by owner are high. Home purchase transactions are complex involving hundreds of thousands of dollars. There are too many stories to tell about unwary buyers buying a bargain only to realize they've got a money pit on their hands. An experienced real estate agent who will represent you strongly throughout the buying process is important. Your first home purchase can be the most stressful experience with serious consequences, so having someone to help can make it a lot easier and secure. If you're a busy professional, going it alone can put you over the edge. Call us today to discuss first time buyers programs and about your wish to buy a home.
First Time Home Buyers Tax Credit
Early last year, as part of the federal government's economic stimulus budget a first-time home buyers tax credit was announced. This tax credit was developed in order to stimulate investment in Canadian housing. The First Time Home Buyers tax credit provides up to $750 in tax relief for those buying their first home or condo. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
A qualifying home is a housing unit located in Canada acquired after January 27, 2009. This includes existing homes and those being constructed. Single-family homes, semi‑detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify.
Home Renovation Tax Credit
The Home Renovation Tax credit offered a tax break of up to $1350. This tax credit expires January 31st, 2010, however there are rumors that it may be extende into 2010. The 15-per-cent credit can be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum home renovation tax credit that can be received is $1,350.
Government of Ontario PDF: Land Transfer Tax Refunds For First-Time Homebuyers
Federal Government Assistance for First Time Homebuyers
The Federal Government program known as the Home Buyer's Plan (HBP) allows to withdraw up to $20,000 to put toward the purchase of a home. The RRSP issuer will not withhold tax on the withdrawn amount at the time of withdrawal. You can even use that amount to put toward the construction of a new custom built home. A townhome, duplex, triplex, semi-detached, single family dwelling, mobile home, or condominium all qualify as a home for this program. Rrsp contributions are a great way to make buying a home easier. Since interest rates are low and property values are rising, you may not lose any long term investment value by using Rrsp contributions.
First Time Homebuyer RRSP Withdrawal Limits for Home Purchase
If you're married, your spouse may also withdraw up to $20,000 for this first time purchase. Both of you however, must be first time home buyers. You must occupy the home. You must repay the amount taken out of your rrsp back into your rrsp account within 15 years in order to avoid paying tax on the withdrawn amount.
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