How can I buy my first home in Canada?

There are many assistance programs and incentives for first-time buyers. These include the First-Time Home Buyers’ Tax Credit (available in both Quebec and Canada), the Home Buyers' Plan (HBP) and the First Home Savings Account (FHSA). If it's a new home, there's also the GST/HST new housing rebate.

How to buy a home for the first time?

Buying your first home is a difficult process that requires a great deal of planning. However, the long-term benefits are significant. To avoid making mistakes, you need to inform yourself and plan every detail. For example, staying within your budget, visiting several properties, doing a pre-purchase inspection and understanding the different types of mortgages. Finally, don't hesitate to meet with a professional such as a notary or mortgage broker.

What is the downpayment percentage for a house?

The minimum downpayment for a home is 5% of the purchase value. However, if the value of the home exceeds $500,000, then the downpayment will be 5% on the first $500,000 and 10% on the portion exceeding $500,000. Finally, if the price of the home exceeds $1,000,000, the downpayment percentage is 20%.

What is the First-Time Home Buyers’ Tax Credit?

The First-Time Home Buyers’ Tax Credit (HBTC) is available in both Quebec and Canada. This is a non-refundable tax credit designed to help individuals purchase their first home. In Canada, the value of the tax credit is $1,500. This corresponds to the amount of the credit ($10,000) multiplied by the lower personal income tax rate (15%). In Quebec, the calculation is similar. But since the lower tax rate is 14%, the maximum tax credit is $1,400. If several people buy their first home together, you can share the credit.

What is the First-Time Home Buyer Incentive?

The First-Time Home Buyer Incentive is a federal program, in partnership with CMHC, that ended on March 31, 2024. This program allowed first-time buyers to obtain 5% to 10% of the home's purchase value as a downpayment from CMHC. This amount, added to your own downpayment, reduces the total cost of the mortgage, making it easier for you to become a homeowner. Then, when you sold, you had to pay back the same percentage of the sale value. Although this program has now come to an end, there's no guarantee that it won't be reintroduced in the future.

Jean-Maximilien Voisine

Jean-Maximilien Voisine is the President and Founder of Milesopedia and a leading expert in rewards programs, credit cards, and travel across Canada, France, and the U.S.A. Now 40 years old and a father of two, he has explored more than 100 countries—many of them alongside his wife Audrey and their children. Specializing in loyalty programs such as Aeroplan, Flying Blue, American Express Membership Rewards, and Marriott Bonvoy, Jean-Maximilien helps travellers unlock the full potential of their points and benefits. His mission: empower others to travel better and smarter across North America and Europe.

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