Cost Savings for home buyers

The Real Estate Market is at its prime across the country. With the interest rates low it is a great time to be a First Time Home buyer. With both federal and provincial governments offering a number of resources, grants, and rebates to the First Time Home Buyer, now is the time to buy your dream home. Here are a few programs that can help you stop renting and make it economical to buy your own house.

Homebuyer’s Plan

Homebuyer’s Plan of Canada Revenue Agency allows First Time Home Buyer to use their RRSP Contributions towards the down payment. First Time Home Buyer can withdraw up to $25,000 from their RRSP account as long as the contribution was made more than 90 days prior. You get 15 years to pay it back. Using this scheme, couples can contribute a huge amount of $50,000 combined towards the down payment.

New Home GST Rebate

If you are building or buying a new home, you have to pay GST on the purchase price. Pay attention to whether or not the purchase price listed/quoted by the builder includes GST. As long as your New Home will be used for primary residence and is priced under $450,000 (before GST), you may be eligible for a partial rebate of the 5% GST. Talk to me or an Accountant to know more.

First Time Home Buyer Tax Credit

First Time Home Buyer or Buyers who have not owned a home within the last four years may be eligible for the First Time Home Buyer tax credit through Economic Action Plan of the Government of Canada. The credit is calculated by multiplying $5,000 by the lowest Federal Income Tax rate for that year. For example, the lowest Federal Income Tax rate for 2014 is 15%, so the value of the credit would be $750.

Energy Efficient Housing

As Candians, we make every effort possible to protect our environment. These efforts are rewarded by a variety of National and Provincial programs which offer rebates and cost saving programs to help build a more sustainable home. Check out Genworth Canada's comprehensive list of Federal and Provincial Energy Efficient Home Programs, loans, refunds, and to explore ways you can save by going green. This guide also explains what to look for when purchasing an energy efficient home.

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