4 Home Buying Programs and Incentives in Canada

Are you looking for the best home buying programs and incentives in Canada? Then you should read this post.

Buying a home for the first time can be pretty exciting yet tricky. Amidst the rush of emotions you experience, you need to pause and think about how much you would be spending. What do you do in this case?

Just like every first-time home buyer, you should look for the best home buying programs and incentives in Canada. Thankfully, the Canadian government presents people like you with several programs and incentives to lighten the cost burden.

Would you like to take advantage of these programs and incentives? Continue reading to find out the top five home buying programs and incentives in Canada to choose from.

Top Home Buying Programs and Incentives in Canada

It is no secret that a first-time home buyer doesn’t have a huge pool of funds from selling a previous property. Putting together all the money you need to purchase a home isn’t so easy. For this reason, the Government of Canada has provided several home buying programs and incentives. With further ado, here are our top five:

The Home Buyers’ Amount

This program is a non-refundable tax credit that helps you reduce the overall cost of purchasing your first home. You can access these tax credits at both the federal and provincial levels. It helps you reduce the taxes you are expected to pay within the year you purchase the home.

To qualify for the Home Buyer’s Amount, you must satisfy these conditions:

• You or your common-law partner or spouse should have acquired a qualifying home you intend to occupy. Alternatively, you should have a disabled relative occupying the home as their primary residence.
• You have not lived in another home you previously owned; neither did your spouse or common-law partner within the year of acquiring the property or any of the four preceding years before the purchase.

GST/HST New Housing Rebates

This incentive gives you money back if you rebuild a home destroyed by fire, renovate an existing home, or purchase a new one. It is only rebated to citizens of Canada who qualify.

While the GST/HST rebate is not exclusive to first-time home buyers, you can take advantage of it if you are buying a home for the first time. You should note that this is a federal incentive, but some provinces have their own version of the rebate. In the case of the provinces, it reimburses you a portion of the rebate component.

The Home Buyers’ Plan (HBP)

This program allows you to withdraw from your RRSP to make a down payment for your new home. You can then repay this amount later on. This option is perfect if you fall into any of the following categories:

• You want to withdraw from your RRSP without paying tax.
• You need to take out around $60,000 for your down payment.
• You need a plan that allows you to repay within 15 years.

The next question we must answer is, who is eligible for the Home Buyer’s Plan (HBP)? For you to be considered eligible, you have to meet the following criteria:

• Be a first-time home buyer.
• Have your RRSP contributions stay in the account for at least 90 days.
• You should have built or purchased a home that is considered eligible in Canada.
• You must have occupied the property for the first year as your main residence.

Also, note that you will be considered eligible if you buy or build an eligible home for a disabled relative. This also passes if you are making the purchase or construction on behalf of a disabled relative. However, in both cases, you must make the individual occupy the property as their primary residence.

The First Home Savings Account (FHSA)

FHSA is an incentive that helps you save as a first-time home buyer. This new account allows you to make around $8,000 in tax-deductible contributions each year or $40,000 as a lifetime maximum. The contribution room begins to accumulate once you open the account.

Who can take advantage of the First Home Savings Account? To be eligible for the FHSA, you have to satisfy the following conditions:

• Be a resident of Canada.
• Be between the ages of 18 and 71.
• Not be a previous homeowner in Canada. This includes your spouse. Both of you must be first-time buyers.

Conclusion

Now, you no longer have to stress about purchasing a new home as a first-time buyer in Canada. You can take advantage of any of the home buying programs or incentives in Canada mentioned in this post. Do you have any questions? You can reach out to us at OneStopBroker.ca, and we will help you out. We also offer consultancy services and can help you purchase, sell, or lease a property in Canada.