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First Time Home Buyers |
CONTACT INFO |
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A short guide to introduce you to the process... |
Direct: 902.832.5994 |
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Before you buy your first home, you'll need to answer a few questions: 1. How much can we afford? The experience of buying your first home can be stressful, confusing, time consuming and crazy, but it doesn't have to be. I have the answers for you! Here are a few Government Programs to assist 1st Time Buyers:Three government programs help buyers: CMHC Home Loan InsuranceCMHC will insure a mortgage for 100 per cent of purchase price for first-time and previous buyers with no minimum down payment for homes worth up to $250,000. RRSP Home Buyers' PlanPotential homebuyers who have not owned a home they occupied as a principal residence in the past five years can withdraw up to $20,000 tax-free from RRSP accounts for a down payment to purchase or build a home. Eligible spouses can also withdraw up to $20,000 for a total of $40,000. Money in the RRSP must have been deposited at least 90 days prior to withdrawal. Income tax is not deducted if the RRSPs are repaid according to the government's repayment schedule. Qualifying homes include detached, semi-detached, townhouses, condominiums and mobile homes. Clients must repay amounts withdrawn under the Home Buyers’ Plan over a period of no more than 15 years. Property Transfer Tax Exemption for First-time BuyersFirst-time buyers are exempt from the Property Transfer Tax (PTT). The PTT is calculated at a rate of one per cent of the first $200,000 and two per cent of the balance. To qualify, a buyer must: - not have owned an interest in
a principal residence anywhere; The exemption is subject to a maximum purchase price depending on location in the province. Mortgage financing must be 70 per cent or greater of the purchase price and there are limits to the amount that the mortgage can be paid down in the first year. The property must be an owner-occupied principal residence.
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