First time home buyer helpers
The new mortgage changes that got implemented on December 15, 2024, were done to help first time home buyers actually buy their first home. Now the increase in insured mortgages to $1,499,999 feels like it only helps a very small percentage of the population but that is a topic for a different day.
Here is a list of some things are available for first time home buyers to take advantage of:
Home Buyers Plan (HBP) - Being able to make tax-free withdrawals from your RRSP up to $60,000 per person. That amount needs to be paid back within 15 years.
First Home Savings Account (FHSA) - Registered account that allows you to save up to $8,000 per year, up to a limit of $40,000, to put towards your first home tax-free.
First Time Home Buyers Tax Credit (HBTC) - Eligible first time home buyers are able to claim a non-refundable tax credit of up to $10,000.
GST/HST New Housing Rebate - The option to get rebates for the GST or HST on new build homes, construction purchases, or on major renovations. The rebate amount should be based on purchase price.
30 Year Amortization Insured Mortgage - As of December 15, 2024, being able to access a 30 year amortization for an insured mortgage (mortgage with less than 20% down payment) which was previously only accessible with a 20% down payment. (Be aware that utilizing this will most likely come with an increased insurance and/or a rate premium depending on the lender)
Land Transfer Tax Rebates - Savings available on land transfer tax costs for first time home buyers in Ontario, British Columbia, and Prince Edward Island
Previously available but officially discontinued: First Time Home Buyers Incentive (FTHBI) - allowed buyers to share home equity with CMHC in exchange for a 5-10% contribution on their down payment but this was discontinued on March 21, 2024
