Purchasing your first home is an exciting milestone, but it can also be a complex process. With careful planning and the right resources, you can confidently navigate the journey. Along with the 7 Buying Steps outlined on the previous page, first-time homebuyers (FHBs) should take full advantage of the government programs and incentives available to them.
Here’s a guide to what matters most:
1. Work with an Experienced REALTOR®
Choosing a REALTOR® who specializes in assisting first-time homebuyers is crucial. They should understand the unique challenges new buyers face, such as navigating mortgage pre-approvals, explaining the buying process, and addressing specific concerns.
I have extensive experience working with first-time buyers. As both a teacher and a life coach, I find great joy in guiding first-time homebuyers through this exciting journey, ensuring they feel supported and informed every step of the way.
2. Explore Perks and Programs for First-Time Buyers
a. First Home Savings Account (FHSA)
- A new registered account allowing you to save up to $40,000 tax-free for your first home.
b. Home Buyers' Plan (HBP)
- Allows you to withdraw up to $35,000 from your RRSP ($70,000 for a couple) tax-free to use as a down payment.
c. First-Time Home Buyers’ Tax Credit (HBTC)
- A federal tax credit offering a non-refundable $10,000 amount on your income tax return.
- Savings: Provides up to $1,500 in tax relief.
- Eligibility:
- You or your spouse/common-law partner must purchase a qualifying home.
- It must be your first home or the first home you’ve owned in the last four years.
d. GST New Housing Rebate
- Offers a rebate on part of the GST paid for new or substantially renovated homes.
- Eligibility: Applies to new construction, major renovations, or shares in a housing co-op.
e. Alberta-Specific Assistance
- While Alberta does not have specific provincial grants for first-time buyers, some municipalities offer programs like down payment assistance or affordable housing incentives.
f. CMHC Mortgage Insurance
- If your down payment is less than 20%, mortgage insurance is required through CMHC or other insurers.
- First-time buyers may benefit from reduced mortgage insurance rates under certain programs.
3. Additional Tips for First-Time Buyers in Alberta
- Affordable Housing Programs: Consider organizations like Habitat for Humanity, which assist buyers with lower incomes.
- Work with Local Lenders: Many financial institutions offer tailored mortgage options and perks for first-time buyers.
- Get Pre-Approval: Securing mortgage pre-approval helps you understand your budget and lock in a competitive interest rate.
With the right support and tools, first-time homebuyers can turn their dream of homeownership into reality. As your dedicated REALTOR®, I’m here to help you navigate every step of the process with confidence and ease.