First Time Buyer

There is no sweeter feeling than coming home after a long day and relaxing in the comfort of 'your' home. You kick back and turn on the TV to enjoy the sumptuous ambiance the house brings as you settle on the couch. Everyone wants to be a homeowner because the comfort, luxury, and independence it brings is gratifying. However, some find it a bit difficult to get an affordable place to stay, and this is what we'll be addressing in this article.

The first-time homebuyers' incentives are a viable option for people finding it difficult to get a house in Canada. This incentive helps qualified people purchase their first house by offering 5 or 10% of the new construction or home's price for a down payment. The addition to your down payment does not increase your monthly mortgage payments. So, people can get their first houses without straining themselves financially. Another perk of opting for the first-time home buyer's incentive is the program offers 5% for a first -time buyer's purchase of an existing home. In addition to this, people are entitled to 5% for a first-time buyer's purchase of a new home. 

To be eligible to be a first-time home buyer in Canada, there are certain criteria you must meet:
• Your total annual income should not exceed $120,000.
• The total number of borrowing is not more than 4 times your qualifying income, stated above.
• You must be a Canadian citizen.

Permanent resident or non-permanent resident with authorization to work in Canada are also eligible. Finally, you have to meet the down payments with some requirements. This includes savings, withdrawal of Registered Retirement Savings Plan (RRSP), a non-repayable financial gift. This gift could be from a family member.  Another important element to being a first-time homebuyer is the choice of home you want to purchase. The property type plays a huge factor in the incentive you want to get. For new construction, you pay a 5% or 10% incentive amount. Existing homes and New/existing/mobile homes have a 5% incentive amount attached to them. These properties can have 1 – 4 units and can include: Single-family houses, duplex, triplex, fourplex, town houses, condominium units, and mobile homes. These properties must be available in Canada and cannot be used as an investment property. 

Furthermore, the incentive comes with some other additional costs, which you need to be aware of. Since you are paying for two mortgages, your lawyers may charge higher fees than usual. At the time of repayment, you will need to have an appraisal to determine the market value of the house. 

Finally, an insurance broker is very vital as he or she will ensure clarity when it comes to property insurance premiums. The insurance broker helps to ascertain if there are additional mortgages registered on the property. A first-time buyer incentive is a great way to own a house in Canada; however, you need to have the right information before going in. Make sure you have a trusted team of mortgage brokers to assist you at every step.