First Time Home Buyer Programs

First Time Home Buyer, tax rebates, Beneficial programs, Hamilton

01 Oct First Time Home Buyer Programs

As a first time home buyer, you’ll be pleased to know that there are various programs available to help save you money.


Mortgage default insurance (known as CMHC) is relatively simple. If you have a down payment that is less than 20% of the home’s value, you must acquire mortgage default insurance. Mortgage default insurance protects your lender in case you don’t make your mortgage payments. It’s designed to make financial organizations comfortable lending to individuals who do not have a big down payment.

Mortgage insurance is determined as a percentage of the value of the mortgage. If your down payment is between 5% to 9.99%, the mortgage insurance will represent 3.6% of the mortgage value. For payments between 10% to 14.99%, the mortgage insurance will cost 2.40%. And for down payments 15% to 19.99%, insurance costs 1.80%.

CMHC insurance is not available for homes costing more than $1million. Therefore, anyone buying a home that costs more than this amount must have at least 20% as a down payment on their home purchase.

In Canada, you must put down a down payment of 5% on your home. This only applies to homes with a buying price of $500,000 or less. It is important to acknowledge that the federal government has increased the amount you have to put down for houses more than $500,000 to $1,000,000. Planning on purchasing a home between these price amounts means that you have to put a down payment of at least 10% according to the new rules made.


If you have not purchased a home within the last four years and have been living in your husbands/ wives home within the same timeframe, you may qualify for the Home Buyer’s Plan.

With this plan, individuals may borrow up to $25,000 tax-free from your RRSP to fund your down payment. Although, the money has to be in your RRSP 90 days before purchasing your home.

The First Time Home Buyer’s Plan has advantages to Canadians because early withdraws are considered taxable income. In this instance, they are not liable. but you must start repaying the amount borrowed from the RRSP two years after you purchase over a 15-year time frame.


You can get a tax rebate on the land transfer that you pay if you live in British Columbia, Ontario, or Prince Edward Island.

Because of the provincial rebate, home buyers are also eligible to receive a tax rebate on the city’s land transfer tax. The amount is relevant whether you’re buying a Toronto townhouse, condo or house and only if you’re a first-time home buyer.


Introduced in 2009, this non-refundable credit is valued at $750. This credit allows first time home buyers to recover some of the costs related to their purchase. It helps distance legal fees, inspections, and other similar closing fees.


This rebate offers Canadians money who buy a newly built home, renovate an existing home, or rebuild a home after it has been damaged by a fire. In all of these instances, a person will run into GST/HST on their purchase. The GST portion of a new home or renovated one can be rebated by all citizens that qualify.


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