Top Benefits That First Time Home Buyers Can Avail
Being a first-time buyer in BC (British Columbia), it is not a piece of cake to find your dream home. The deliberate planning and government assistance serve the purpose of buying a first-time home as there has been a steady increase in the prices of homes due to the pandemic. According to The British Columbia Real Estate Association (BCREA), 124,854 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in 2021, a 32.8 percent increase from the 94,001 units sold in 2020. Average MLS residential annual price in BC was 927,877 dollars, there was an 18.7 percent boost as compared to 781,572 dollars that recorded in the previous year. Total sales dollar volume was $115.8 billion, a 57.7 percent increase from 2020.
When it comes to a home mortgage, you need to be attentive to make sure that you make the right decision. The first step, you take is to consult a reputed mortgage broker in your locale If you are residing in Surrey, Vancouver then Alpha Mortgage House Corp is the best option for you to choose who will make the daunting process of mortgage application easy and will improve the improve chances of mortgage approval as a First time home buyer.
1. PROPERTY TRANSFER TAX:
A mortgage pre approval is a document that an individual provides to a lender before applying for a mortgage. It is used as proof of the applicant’s ability to repay the mortgage, and also helps in making sure that the applicant will not default on the mortgage.
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Whenever you purchase your dream home, property transfer is the biggest cost that you have to incur. The property transfer tax is imposed based on the fair market value of the property. For a first-time home buyer in Surrey, this cost can be reduced and to qualify to avail exemptions from property transfer tax as a first-time buyer.
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Following is the criteria to get an exemption from property transfer tax: –Â
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1. He or She should be Canadian Citizen or Permanent Resident
2. You have been living in British Columbia for a year before the date you register the property
3. You have filed at least 2 income tax returns as a B.C. resident in the last 6 financial years before the registration date
4. You never registered an interest in a property that was your principal property
5. You never received an exemption as a first-time buyer or a refund
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Moreover, the property must be: –
1. Used only as your principal residence
2. Market value of $500,000 or less
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3. Have 0.5 hectares (1.24 acres) or smaller
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2. HOME BUYERS’ PLAN (HBP):
As per Canada.ca, the Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) so that you can buy or build a home for yourself and for your related person with a disability.Â
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Currently, the HBP withdrawal limit is $35,000.Â
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Following are the points to participate in the Home Buyers’ Plan (HBP): –
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1.You must be a first-time home buyer if you want to HBP (Home Buyers’ Plan)
- You must have a written agreement to buy or build a home
- You must be a resident of Canada at time you withdraw funds from your RRSPs under the HBP during the purchase of your dream house
- You must be ready to occupy the home as your principal place of residence within one year after buying or building it.
3. HOME BUYERS’ AMOUNT:
You can claim up to $5,000 on the purchase of your home under the Home Buyers’ Amount section, only if you are applicable for: –
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You (or your spouse or common-law partner) acquired a qualifying home
- You did not live in another home previously that was owned by you (or your spouse or common-law partner) in the year of the acquisition or in any of the four preceding years (first-time home buyer)
4. GST/HST NEW HOUSING REBATE:
These are the rebates for new housing. The GST/HST New Housing Rebate allows an individual to recover some of the GST or the federal part of the HST paid for a new or renovated house that is used by the individual’s, or their relation’s, primary place of residence when all of the other conditions are met.
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In case, there are more than one owners of the house, all of them must be individuals. An individual cannot claim the goods and services tax/harmonized sales tax (GST/HST) new housing rebate if a partnership or corporation also owns the house.
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Partnerships and corporations do not deserve to claim the new housing rebate.
5. CANADA GREENER HOMES GRANT:
The Canada Greener Homes Grant is for Canadians who want to improve the energy efficiency of their homes and seek to reduce their energy bills. Eligible homeowners will receive grants and loans to make their homes energy-efficient. This is an ideal grant to utilize once you move into your home.
6. THE FIRST-TIME HOMEBUYER INCENTIVE:
The First-Time Home Buyer Incentive helps qualified first-time homebuyers to reduce their monthly mortgage payments. This program is not for everyone.
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The First-Time Home Buyer Incentive is a kind of shared-equity mortgage with the Government of Canada.Â
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It offers:
- 5% or 10% for a first-time buyer’s purchase of a newly constructed home
- 5% for a first-time buyer’s purchase of a resale (existing) homeÂ
- 5% for a first-time buyer who buys a new or resale mobile/manufactured home
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The Incentive’s shared-equity mortgage is a sort of mortgage with the government ‘s shared investment in the home. As a result, the government contributes to both the upside and downside of the property value.
7. PREDICTABLE MONTHLY PAYMENTS:
When you are using a fixed-rate mortgage, then your monthly mortgage payment remains constant while your rent can increase at the whim of your landlord. With the help of mortgage calculator, you can estimate the cost of your mortgage.
Alpha Mortgage House Corporation is a Mortgage Broker in Surrey, BC. We provide mortgages for Home Purchases, Project financing, Second mortgages, Commercial mortgages, Mortgages for first-time home buyers and more. Alpha Mortgage is a one-stop solution for all your mortgage needs. Our team works with top lenders to provide you with the best financial options.