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Benefits And How To Buy: For First Time Home Buyers in Great Toronto Area, Ontario Canada


Being a first time home buyer doesn’t have to be hard.

Buying your first home can be a very exciting time! With tons of things to know and learn however, it can seem overwhelming. Which is why The RE/MAX Team at Real Value Home is doing our very best to simplify the whole process. What you want to know, what you need to know, and perhaps a few things you’ve never even considered. Browse through our simple step by step: 8 steps home buyers guide. In fact what you need is: face to face and Free consultation by experienced and professional real estate agents to understand the step by step process, different types homes and type of home options available to you within your price range. Fortunately world’s best known company and brand RE/MAX offers such totally FREE First Time Home Buyer Class from their Mississauga office for all areas of Greater Toronto area, Durham region, Halton and Hamilton region in Ontario Canada.

Neighborhood and Type of House?

What neighborhood you’re interested in? Single detached or townhome? Square footage and upgrade packages? If you’ve never purchased a home before these are things you may never even know you had to think about.

Where do you want to live?

It may sound like a simple question but it seems to be the most obvious: where do you want to live? Consider the city’s convenience versus more relaxed rural settings. Suburbs versus downtown. As a rule, considering the needs of your family is the best way to decide where to live. In fact, a recent study by found that 90% of first-time buyers settled on the neighborhood where they wanted to live before choosing the actual home they wanted to buy.

What type of home to buy?

Once you know where you want to live you need to decide what you want to live in. Detached, semi-detached, townhome, condo? Semi-detached homes or townhomes are usually less expensive than comparably sized detached single family dwelling. If having neighbors close to you are OK then this is perfect. If you prefer a little more space to call your own however perhaps a detached home would be more to your liking. Condos are great if you’re looking for extensive fitness and social amenities but remember, you pay for them in the initial cost and in the monthly condo fees, whether you use them or not.

Figuring out what you can afford

The easiest way is to figure out what you can afford is by examining your income, expenses, investments, savings and debt. When you do that, try to keep in mind inevitable expenses such as a wedding, new car, etc., etc.) And always keep a little extra for items such as legal fees, real estate agent fees, land transfer fees, and mortgage insurance to name but a few.

A professional and experienced real estate agent may help you to calculate these numbers and connect you with suitable lenders and mortgage professionals to find out as how much mortgage / Loan you may get. That will finally determine you’re your home purchase price range.

May I withdraw money for down payment for my first home purchase in Canada from my Registered Retirement Savings Plan (RRSP) ?

Yes, This program simply allows prospective homebuyers to borrow money from their own RRSP’s to buy a home. Similar to a loan this money must be paid back within a specified time frame. You must be an RRSP holder, a resident of Canada and a first-time homebuyer to qualify. The plan allows you to withdraw up to $35,000.00 tax free from your RRSP to purchase your home, provided it is paid back within 15 years. If these funds are going to be used for a down payment they must have been deposited at least 90 days before you sign your agreement of purchase and sale.

If me and my spouse both qualify to participate or Withdraw under the HBP?

Yes, each of you may withdraw up to $35,000 from your own RRSPs for a combined maximum withdrawal of $70,000. You can make a single withdrawal or a series of withdrawals in the same calendar year.

Home Buyers’ Plan (HBP)

To help you come up with a down payment, you may be eligible for the HBP. The HBP allows you to withdraw up to $35,000, tax-free, from your Registered Retirement Savings Plan (RRSP). You must use this amount to buy or build a qualifying home. You have up to 15 years to repay the amounts you withdraw.

Find out if you’re eligible and how to participate in the HBP.

CMHC (mortgage insurance)

Many first-time buyers face unique financial challenges along the way. We know saving up for a down payment in these expensive times can be difficult, and every penny counts. Luckily there are a variety of programs available from both the provincial and federal governments to help simplify and make the process much easier.

If your down Payment is less then 20% you are required to pay for lender’s insurance offered by CMHC and other agencies. There are slab rates for such insurance that is if you are putting 5%, 10%, 15% or less then 20%. Such one time insurance fee will be added to your loan amount to be paid within the amortization period of 25 Years. Check this link for CMHC mortgage loan insurance premium calculator.

Home land transfer tax refund

This program applies to newly-built or Re sale (Old) homes and gives eligible purchasers a refund of their land transfer tax based on the purchase price of their home. To be eligible, you and your spouse must be first-time home buyers.

The Province of Ontario in Canada has doubled the maximum refund better known as rebate for first-time homebuyers from $2,000 to $4,000, effective January 1, 2017.

For more information, ask at your The Team at Real Value Home Sales Office or contact the Ontario Ministry of Finance 1-800-263-7965


Whatever home you choose, whichever route you take, buying a new home is one of the most exciting and dynamic experiences of your life. So have fun and remember if you have any questions, the experts Gyanesh and his team at Real Value Home are just a phone call away!

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