Having your own home is the world’s best feeling. A secured shelter where you can live happily with your family is a heartful emotion that the people living on rented houses for sale in Barrie better understand.
If you are thinking to buy a home of your choice, there can be many things you might require, the first thing that you would need is the upfront cost i.e. accumulating funds for the down payment.
The percentage of the down payment may vary and that could be daunting to pay on the property purchase price. But no worries, fortunately, the government of Canada has formulated certain aids and programs that help and support first-time homebuyers to buy houses for sale in newmarket within their limited income.
If you are seriously searching for a new home and managing through different financial options, then don’t skip reading till the last because it’s definitely worth your time to see what benefits and support do these programs and schemes hold
RRSP Home Buyers’ Plan
This plan is applicable for first-time homebuyers, which means anybody who hasn’t purchased a house for the past four years or has lived in a home that was owned by their spouse.
RRSP stands for Registered Retirement Savings Plan, which means you can borrow an amount up to $35,000, completely tax-free from your RRSP Plan. And you may use this borrowed amount for making the down payment.
Also, if you and your spouse plan to purchase a home together, you can borrow $35000 each or $70,000 collectively.
Under the HBP (Home Buyers’ Plan )funding, you can borrow a loan amount for a period of 15-year completely interest-free. Make sure you have money in your RRSP for at least 90 days before you submit the application for getting a loan under this plan.
Besides, a major benefit associated with this plan is that the loan amount borrowed is not subject to any tax. So, even if you get to know about any homes for sale in Barrie, Ontario in your knowledge, you can buy the same without worrying about the taxes on loans borrowed under this scheme.
RRSP First-Time Home Buyer Incentive
Under the First- Time Home Buyer Incentive, the Canadian government provides 5 to 10% of the down payment on the purchase of a new house or provides 5% of a down payment on an existing home in exchange for equity in your property. If you’re one of those who spend most of the time rolling your eyes searching ‘condos for sale in newmarket’, then you can use this scheme for purchasing the condos of your choice additionally.
But when you resell your home or have any timber land for sale, you will require to pay the equity share back to the government. If your house or land value has increased at the time of reselling, you will have to pay more equity than what you received from the government. This scheme was initiated in June 2019.
The basic eligibility for this plan requires you to be a first-time homebuyer as well as you, must have a 5% down payment, and must have a household income of at least $120,000 per annum. Also, you must not be a divorcee or should have broken any common law.
Land Transfer Tax Rebate
As the name suggests, a Land Transfer Tax Rebate simply involves a rebate on the land transfer tax. Such rebates are majorly available in cities like Ontario, Prince Edward Island, British Columbia, etc.
GST/HST New Housing Rebate
Under this program, you get your money back for the amount paid on GST/HST when you build your new house or get your existing house revamped.
If you wish to build an additional part of your existing home, you also get a rebate for the add-on part built. Besides, there is also a rebate when you convert a commercial property into a residential one.
It’s important to note that the rebates can be claimed only when the house completion value is less than $450000. Moreover, this rebate can also be claimed on traditional houses for sale in Aurora properties such as floating or mobile homes.
CMHC Insurance is a plan that has made it possible for the people of Canada to achieve homeownership snugly. Under this, the lender of the loan amount gets protection against the default of mortgage payment by the borrower.
This is also known as mortgage default insurance, this scheme can’t be used for homes whose value goes beyond the 1million dollars limit.
You can apply for this insurance through Canada Guaranty, Genworth Financial, or the Canada Mortgage and Housing Corporation(CMHC).
Prince Edward Island Down Payment Assistance
Under this payment assistance, an applicant is allowed to borrow a loan amount up to 5% of the home purchase price, in other words, the maximum limit to borrow the loan amount under this plan is $11,250. You can use this borrowed money for buying the townhouses for sale in Barrie, with additional funds support from friends and family.
New Brunswick Down Payment Assistance
This program allows you to borrow a loan amount equivalent to 40% of the house purchase price. This is basically a kind of homeownership program, which suggests permitting a loan amount of up to $75,000 if you are building a new property. If the properties are established houses for sale in Barrie, Ontario, this scheme may be helpful.
If we missed anything, you can also refer to the local government to learn more about what programs are available for first-time homebuyers to make newmarket apartment purchases.