First Time Home Buyers Benefits

Posted by Rod Thompson on Tuesday, April 30th, 2019 at 10:01am

 

Looking to buy a new home in Edmonton?  There are benefits and credits available to make it easier when it comes to buying a new home and after you purchase your home. 

The First Time Home Buyers Tax Credit 

You can receive as much as $750 back on your tax payment.  The HBTC is a non refundable credit that allows first time home buyers and those with disabilities to claim this refund. 

Line 369 - Home Buyers Amount

You can claim $5,000 for the purchase of a qualifying home in the year if both of the following apply:

  • You or your spouse or common-law partner acquired a qualifying home.
  • You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

RRSPs for Down Payments

Need help with a down payment for your first home? As a first time home buyer you can borrow up to $25,000 from your RRSP for a down payment, tax-free. If you're purchasing with someone who is also a first time home buyer, you can both access $25,000 from your RRSP for a combined total of $50,000.

First Place Home Ownership Program

It is available in Edmonton to help people who meet certain income limitations to purchase a first home. Certain builders participate in the program in various areas of the city, so you cannot select just any home and qualify. These properties usually will consist of town homes and condominiums. Once you have qualified for a mortgage, you then can apply to the First Place program. You must agree to live in the condominium unit for at least five years. 

  • Must be able to qualify and obtain pre-approved financing (recommended down payment of minimum 5%, up to 25 year mortgage amortization, can be obtained with help of co-signer).
  • Must be first-time home buyers in Alberta Applicants must agree to be full-time occupants and residents of the condominium unit for the first five years.
  • Must have a personal net worth less than $25,000, excluding a primary vehicle, RRSPs and the down payment required for the condominium unit.
  • Must be Canadian citizen or have permanent resident status Must be employed and have a combined household income of less than $117,000 - see your financial lending institution for more details.

Applicants may use a co-signer to qualify for and obtain mortgage approval from a lender Mortgage co-signers do not need to meet the eligibility criteria, and therefore do not have to be full time occupants and residents, meet income and net worth criteria. Applicants should contact their financial institution.

(Source : City of Edmonton Programs and Services) 

GST New Housing Rebate

You may be eligible for a tax rebate on a portion of the GST you paid as part of the purchase or construction of a new home.

You may be eligible for a new housing rebate for some of the GST paid if you are an individual who:

  • Purchased new housing or constructed or substantially renovated housing, which could include housing on leased land (if the lease is for at least 20 years or gives you the option to buy the land), for use as your (or your relation’s) primary place of residence
  • Purchased shares in a co-operative housing (co-op) complex for the purpose of using a unit in the co-op for use as your (or your relation’s) primary place of residence
  • Constructed or substantially renovated your own home, or hired someone else to construct or substantially renovate your home for use as your (or your relation’s) primary place of residence and the fair market value of the house when the construction is substantially completed is less than $450,000. 

Qualifying housing also includes mobile homes (including modular homes) and floating homes. For mobile and floating homes, you may have the option to treat your mobile or floating home as a purchased home or as an owner-built home when claiming your new housing rebate.

(Source - Government of Canada - GST/HST New Housing Rebate) 

 If you  would like more information or have questions about purchasing a home please feel free to contact us and we would be happy to help you with your questions. 

 

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