What are first-time home buyer incentive programs?
Canada offers several incentive programs to assist first-time homebuyers in purchasing their first home. These programs are designed to make homeownership more accessible by reducing the financial burden associated with buying a home.
Government grants for first-time home buyers:
- First-Time Home Buyer Incentive. The FTHBI is a shared-equity mortgage program designed to help first-time homebuyers reduce their monthly mortgage payments without increasing their down payment.
- Home Buyers' Plan. The HBP allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a home.
- First-Time Home Buyer Tax Credit. The HBTC is a non-refundable tax credit that provides financial assistance to first-time homebuyers.
- GST/HST New Housing Rebate. This rebate allows homebuyers to recover some of the GST or HST paid on a new home, a substantially renovated home, or a home that has been converted from non-residential to residential.
- Provincial and Territorial Programs. Many provinces and territories have additional programs and incentives for first-time homebuyers.
Each program has its own eligibility criteria and application process, so it’s essential to review the specific requirements and consult with a mortgage advisor or financial planner to determine the best options for your situation.
Home loan calculations for 20 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 400,000 | 4.85% | 195,617 |
| 400,000 | 4.85% | 195,617 |
| 400,000 | 4.85% | 195,617 |
| 500,000 | 5.35% | 269,729 |
| 500,000 | 5.35% | 269,729 |
| 500,000 | 5.35% | 269,729 |
| 600,000 | 5.90% | 356,950 |
| 600,000 | 5.90% | 356,950 |
| 600,000 | 5.90% | 356,950 |
| 700,000 | 6.40% | 451,733 |
| 700,000 | 6.40% | 451,733 |
| 700,000 | 6.40% | 451,733 |
What are the features of the first-time home buyer RRSP? What are the qualifications?
The First-Time Home Buyer RRSP, more commonly referred to as the Home Buyers' Plan (HBP), is a Canadian government program that allows first-time homebuyers to use their Registered Retirement Savings Plan (RRSP) savings to purchase a home.
The HBP is designed to help first-time homebuyers access their RRSP savings to cover the down payment or other costs associated with buying or building a home.
You can withdraw up to $35,000 from your RRSP under the HBP. If you are buying the home with a spouse or common-law partner, each of you can withdraw up to $35,000, allowing a combined total of up to $70,000.
You must be a first-time homebuyer, which generally means you have not owned a home in the last four years. The definition can vary, so check the specific criteria with the Canada Revenue Agency (CRA).
The home must be intended as your principal residence. The funds must have been in your RRSP for at least 90 days before the withdrawal to avoid taxes. You must begin repaying the amount withdrawn into your RRSP within two years of the withdrawal. The total repayment period is 15 years.
You can also see the similar FAQ about:
- Cash back mortgage proposal in CIBC
- Does CIBC cooperate with mortgage brokers
- Does Equitable Bank charge the mortgage penalty?
- Equitable Bank appraiser list
- Financial calculators from Vancity Credit Union
Details of companies offering the financial services:
Clover Mortgage
Head office’s address: 7 City Centre Dr Suite 150, Mississauga, ON L5B 1M5
Contact center: 1-416-674-6222
Web-site: https://clovermortgage.ca/
True North Mortgage
Web-site: https://www.truenorthmortgage.ca/
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Spring Financial
Head office’s address: 555 Burrard St #505, Vancouver, BC V7X 1M8
Web-site: https://www.springfinancial.ca/
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004