Grants are always a way to ease the financial burden of home buying. It is even more feasible when it pertains to first-time home buying. People in Canada need various housing grant programs to purchase their own homes. Hence, it is indeed important you know of the available options. Easy access to various home buyer grant programs help you gain more. Besides, you can use them to adjust to your situations.
First Time Home Buyer Grants Rules
First time home buying requires you to check with a dozen of things. Find your qualifications for rebate. Tax qualification for a down payment is another important parameter. There are loads of information you should navigate. This would help you increase your chances of home buying.
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Let us go through essential things before you purchase your home.
CMHC is mortgage default insurance. Most often, it appears to be strange. But, it is simple yet functional. It asks you to purchase it when you have less than 20% of the home buyer down payment. Remember, this does not work like insurance. Hence, it can’t protect you financially. However, it protects your lender when you fail to pay your mortgage payments. CMHC helps lenders to provide the appropriate down payment for first time home buyers.
You cannot avail CMHC insurance if your home purchase price is more than $1 million. Therefore, you must have 20% of the total home buying down payment. In Canada, a minimum of 5% of the down payment is necessary for home buying. This new rule has been in action since the federal government interference.
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RRSP Home Buyers’ Plan
The government’s first time home buyer grants are available for everyone. However, there is a certain condition to achieve it. First, you should not have purchased a home in the last four years. On the other way around, you must not live in your spouse’s house in that similar period. Hence, you can win your eligibility for first time home buyer grants. RRSP home buyer grant program allows you to borrow up to $25,000 tax-free money. Therefore, it is easier to pay for your down payment. At least 90 days before you purchase your home, RRSP keeps the money with them.
Every Canadian has a great advantage from this grant too. Even though it is a taxable income, it gives you time to repay it and avoid tax. However, you must repay the amount as early as two years from the time of borrow. With this, you can repay the amount over a period of 15 years.
GST/HST Housing Rebate
Housing rebates from GST/HST help Canadians in many ways. The rebate grants help you buy a new home. Other than this, you can renovate your existing housing units. However, the borrowed amount from GST/HST helps you rebuild your structure damaged by fire. Want to qualify for the housing rebate grant? Remember, your home must be your primary residence. Other than this, people living in modular, floating and mobile homes can avail these grants. The federal government collects GST rebates. Therefore, every Canadian can avail of this grant. In addition, Ontario gets is HST. And hence, they can offer rebates to citizens in provincial portions.
Land Transfer Tax Rebate
Land transfer tax is linked to purchasing homes. Under this rebate grant program, you can have tax exemption while you purchase your home. However, your home or house must be in provincial territories or cities. Simultaneously, the amount of rebate depends on your location. There are many cities or provinces that get land transfer tax rebate grants. Ontario, Prince Edward Island, and British Columbia get this grant.
However, the first time home buyers also get the land transfer tax rebate in Ontario as well.
These are some of the grant programs. So, use them to purchase your first-time home.
for full information, visit- http://homepropertygrants.com/
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