First-time Home Buyer Programs
There are a few programs out there to assist first-time homebuyers and it is important to familiarize yourself with them. Each program is linked to its corresponding website for more information.
- First-time Home Buyers’ Tax Credit (HBTC): when filing your taxes for the year you purchased your home, ensure you enter that you purchased a home during that year for a tax credit of up to $1,500 to eligible home buyers.
- First-time Home Buyers Incentive (FTHBI): this is a shared equity government program aimed to lower the monthly mortgage payments for qualifying first-time home buyers
- Home Buyers Plan (HBP): this program allows first-time home buyers to withdraw up to $35,000 from your RRSPs towards down payment on a qualifying home purchase. Funds must be repaid to your RRSP within 15 years.
- Tax-Free First Home Savings Account (TFFHSA): this is coming in 2023 so details are still in the works, this account combines the benefits of tax-deductible contributions (like a RRSP) and withdrawals would be tax-free (like a TFSA) geared towards first-time home buyers saving for their down payment on a qualifying home purchase.
Key features: annual contribution of $8,000 with a lifetime contribution limit of $40,000, unused amount can be carried over to subsequent years.
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