First Time Home Buyers
First Time Home Buyer Guide
First time home buyers often have many questions about the process of getting a mortgage. They are also usually unaware that there are options outside of traditional banks for obtaining a mortgage. They may have never even heard of a mortgage broker and therefore be unaware that we have access to many lenders, while traditional banks deal only with their own product.
Here is some valuable information if you are buying a home for the first time.
What is the minimum amount that I will need for a down payment?
You will need at least 5% of the purchase price?
Am I allowed to receive funds toward my down payment from someone else?
Yes, you can receive a gift donation that must come from a blood relative. It must be a gift, meaning the donor does not expect to be paid back.
Do I have to have my down payment in the bank?
You must be able to show 3 months history of the funds being in an account owned by you. This can be a savings, chequing, TFSA or RRSP account.
Can I take money out of my TFSA to buy a house?
Yes, depending on the type of investment held in the TFSA. Typically, funds can be withdrawn from a TFSA at any time.
Are there any rebates available for first time home buyers in Ontario?
First time home buyers may be eligible for a rebate on the land transfer tax of up to $4,000.00.
If you would like to calculate the land transfer tax on a purchase you can use this tool.
How much can a first-time home buyer take from RRSPs?
The limit for home buying purposes is $35,000 per person. When using the RRSP funds to buy a house or condo, your spouse can also withdraw up to the $35,000 limit, if they qualify.
If, as a first time home buyer, I am buying a newly constructed home, can I get a rebate on the HST?
You may be eligible for a rebate of up to $24,000 of the provincial portion ( 8% ) of the HST. If you have questions about the HST rebate, it is best if you contact the Canada Revenue Agency.
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