A lot has happened in the real estate market over the past month or so, and two big trends are driving first-time buyers into the marketplace: dropping home prices and dropping interest rates. This is already becoming an ideal time for first-time homebuyers to venture into the real estate market, with affordability on the rise (one economist predicting home prices to drop 15% this year).
If you’re a first-time homebuyer, there are a number of grants and rebates available to you, that will help you afford that home without breaking the bank.
The Canadian Revenue Agency’s Homebuyer’s Plan, allows first-time buyers to use their RRSP contribution towards a down payment. You’re able to withdraw up to $25,000 from an RRSP account, so long as the contribution was made more than 90 days previous, and will have it paid back over a 15-year period. You can learn more about that option here.
The Government of Canada’s Economic Action Plan offers a tax credit to first-time homebuyers or those who have not owned a home within the last four years. This credit is based on $5,000 multiplied by the lowest federal income tax rate for the year you are looking to buy. More information on the tax credit is here.
There are a variety of grants and rebates available to those who want to purchase an eco-friendly home, or want to purchase a home with the intention of making environmentally-friendly upgrades. More information about these options is here.
First-time homebuyers who also get insured through Genworth Financial, are eligible for a variety of incentives, such as gift cards, rebates, etc. More information can be found on the Genworth website.
Don’t worry about navigating this information alone, if you think you’re elgible for one of these incentives, or have questions, please feel free to contact me. You can also tweet me anytime.
