Exploring First Time Home Buyer Programs for New Build Homes in Canada
- hellomillerdesign2
- Sep 13
- 2 min read
Buying your first home is an exciting milestone, but it can also be an overwhelming one! In Canada, there are several programs available to assist you with this process, especially if you are looking at purchasing a new build home! We will guide you through some first-time home buyer programs, particularly those tailored to new builds, so you can make an informed decision!
Understanding First Time Home Buyer Programs
First-time home buyer programs aim to help individuals and families tackle the financial challenges of purchasing a home. They often provide assistance in the form of financial support, tax credits, and lower payments to make homeownership more achievable. In Canada you are considered a first time home buyer if in the last four years, you did not live in a home that you (or your spouse or common-law partner) owned. If you are separated and no longer own the home, you also may be considered a first time buyer.
Federal Programs for First Time Home Buyers
1. Extended Amortization
The Government of Canada introduced an extended amortization program for first time buyers when purchasing a new build. This means that instead of the mortgage length being 25 years, it can now extend to 30 years. This extended length results in lower mortgage payments and a higher purchase price when qualifying for a mortgage.
2. Home Buyers' Plan (HBP)
The Home Buyers' Plan permits first-time buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) for their new home purchase, tax-free.
3. Home Buyers' Plan (HBP)
A first home savings account (FHSA) is a registered plan which allows you, if you are a first time buyer, to save to buy or build a qualifying first home tax-free (up to certain limits).
4. GST/HST New Housing Rebate
When purchasing a new build home, buyers qualify for a GST New Housing Rebate. This rebate allows homeowners to recover the GST paid on their new home purchase.
Provincial Programs for First Time Home Buyers
Alongside the federal incentives, Alberta offers support for first-time home buyers as well. Eligible first-time buyers can claim a non-refundable tax credit on their annual tax return. This credit amounts to up to $5,000 which can help offset some costs associated with buying a new build home, making the process more financially feasible.
Making Your Homeownership Dreams a Reality
Starting your journey to home ownership can be overwhelming however, with the right resources and team behind you, you can buy with confidence! At Gert Martens Mortgage Team in Grande Prairie, we stay up to date on all of the newest incentives and government programs so that you, our clients, get the best mortgages products available!
To start the mortgage process today reach out to Grande Prairie Mortgage Broker's Gert Martens Mortgage Team!
Use the H S T Calculator to get the 13 percent HST amount in Ontario by entering the amount before or after taxes. Make sure you look at the parts of HST that are for Federal Tax and Provincial Tax.