First Time Home Buyer

This grant was established by the government of Canada in 2009 to help first-time buyers recoup some of their expenses regarding the purchase of their property such as land transfer fees and legal fees. The non-refundable credit is worth about $750 at current tax rates. To be eligible for the tax credit, the property must be registered in either your name or your spouse’s name. Also, you must not have been a homeowner in the previous four years. Almost all types of homes qualify for the tax credit.

If you qualify as a first-time buyer, the government permits you to borrow up to $25000 from your RRSP to finance the purchase of your home. To be eligible for this offer, you must not be a homeowner for the previous four years or lived in a house owned by your spouse within that period. Note that you will have to repay the fund within 15 years starting from two years after you took the loan.

The City of Hamilton has a Home Ownership Program that provides a lump-sum payment for first-time buyers who purchase an eligible property. Qualified buyers include first-time buyers who purchase a new residential unit, families with a minimum of one child below 18 years who buy an existing building having 1-3 above-ground groups, or families who have a minimum of one child below 18 years who already have a home and then purchase a newly-built 3-bedroom house. A buyer can get up to $6,250 lump-sum payment and full refund of the real estate transfer tax, i.e., the welcome tax. Put together; you could be $10,000 richer from this largesse.

This rebate is designed to assist Canadian who paid HST or GST by buying a new home, renovating an existing property, or rebuilding one destroyed by fire. Floating and modular homes can also get the rebate. Only people whose home serves as their primary residence qualify for the discount.

These are some of the ways of cutting your expenses if you are a first-time buyer in Hamilton. Talk to your mortgage broker in Hamilton about any program that could help you save some cash. And if you are eligible, then you are lucky!

The loan that you make to buy a house or some other property is called a mortgage. The principal refers to the amount borrowed. Each mortgage payment pays off part of the principal plus the interest.

You have custody over the property. However, if you fail to pay the loan and interest according to the terms of the contract, the lender may repossess the property.

A down payment refers to the money you pay for real estate property. This money is paid upfront and the rest of the cost of your new home is covered by your mortgage. For properties that cost up to $500,000, the minimum down payment in Canada is 5% – however, do take note that your lender may sometimes require a higher down payment.
But what if the cost of the property is more than $500,000? If that is the case then the interest is 5% for the first $500,000 and then 10% for the remainder of the cost.