First-Time Homebuyer Solutions
First-Time Homebuyer Purchase Solutions Buying your first home is a big milestone—but it doesn’t have to be overwhelming. We specialize in helping first-time homebuyers navigate the process with ease, offering personalized affordability solutions to turn your homeownership dreams into reality. Why Choose Us? Expert Guidance: We’ll guide you through every step, from understanding your budget […]
First-Time Homebuyer Purchase Solutions
Buying your first home is a big milestone—but it doesn’t have to be overwhelming. We specialize in helping first-time homebuyers navigate the process with ease, offering personalized affordability solutions to turn your homeownership dreams into reality.
Why Choose Us?
- Expert Guidance: We’ll guide you through every step, from understanding your budget to securing the best mortgage.
- Tailored Solutions: Get access to customized mortgage products designed for first-time buyers.
- Maximized Affordability: We help you take advantage of first-time buyer programs, and custom solution to stretch your buying power.
What We Offer:
- Competitive lowest rates to keep your monthly payments manageable.
- Flexible down payment options to fit your budget.
- Insights into government incentives like the First-Time Home Buyer Programs and tax credits.
We’ll help you secure the best mortgage product with the lowest rate and right terms to maximize your affordability and purchase price point. In the event that your income does not currently place you at the right qualification index for your home needs, we’ll provide you with solutions and guidance to reach your home ownership goals.
Overcoming the Affordability Gap
Buying your first home in today’s market comes with unique challenges—high property prices, strict lending rules, and qualification hurdles. We specialize in helping first-time buyers overcome these barriers by helping you navigate all options and also offering additional innovative affordability solutions tailored to your unique needs if needed. Some additional options we’ll consider if necessary:
- Strong Co-Signer:
An immediate family member with strong financial standing can co-sign your mortgage and be on the property title to help you qualify. We provide strategies to mitigate their exposure to capital gains, maximize LTVR (Loan-to-Value Ratio) offering more flexibility with downpayment, and minimize future land transfer taxes when removing them from the title and mortgage at maturity. - Guarantor Options:
Traditionally, guarantors—family members guaranteeing the mortgage—don’t appear on the property title and their income isn’t used to qualify. However, we now have access to a progressive new product allowing your guarantor’s income to count toward mortgage qualification without requiring them to be on the title. This game-changing solution is perfect for families wanting to help without taking on title-related responsibilities. - Joint Business Ventures:
Partner with a like-minded individual to co-own your home, with both applicants on the mortgage. While not for everyone, there are ways to mitigate risks and inconveniences. Not all lenders support this approach, however we know which lenders do and will help you secure the best financing solutions for specialized needs. We’ll even provide you with guidance and the right connections to establish and setup your joint business ventures agreements to protect all partners. - Increase Your Down Payment:
- Raising your down payment to 20%—whether through savings or gifts from immediate family—can unlock more options. Certain lenders allow for flexible debt service ratios and other options to help increase approved loan amounts. Some lenders even provide cash back mortgage solutions that can be applied towards the downpayment. We’ll help you find the perfect lender for your custom needs.
- Rent-to-Own (RTO) Solutions:
RTO offers a pathway to ownership, but it’s not for everyone. Understanding the pros, cons, and risks is essential before committing to this approach. We can provide you with guidance and counsel as well as get you connected with reputable Rent-to-Own companies.
First-Time Homebuyer Benefits.
Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits. Also, The Government of Canada has benefits, credits, and incentives to support you as a first-time homebuyers.
New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization even with high ratio insured minimum downpayment mortgages. This mortgage option can allow you to have smaller monthly payments, versus a standard 25-year amortization, and help you qualify for more.
Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), allowing more Canadians qualify for insured mortgages with minimum down payment.
The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 per applicant from your RRSP to buy a home! That means you can access a total of $120,000 from your RRSP’s if purchasing with a spouse.
First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions. You may withdraw from your FHSA and your RRSP under the HBP for the same home, as long as you meet all of the conditions at the time of each withdrawal.
Land Transfer Tax Rebates: First-time buyers in Ontario, British Columbia, Prince Edward Island, and the City of Toronto are able to claim land transfer tax rebates. Consult with your Broker or Lawyer to confirm details based on your location.
First-Time Home Buyer’s Tax Credit (HBTC): If you qualify you could claim a non-refundable tax credit of up to $1,500 when you acquire a qualifying home.
GST/HST New Housing Rebate: The GST/HST rebate is available for new home purchases and could reduce upfront costs to help make homeownership more affordable. You may qualify for the goods and services tax / harmonized sales tax (GST/HST) new housing rebate. This rebate will help you recover some of the GST, or the federal part of the HST you paid, for your new or substantially renovated house, if you meet all the requirements. You may also qualify for other provincial housing rebates for the provincial part of the HST you paid for your home.
Other programs for first-time home buyers: New construction funding for Indigenous housing for on and off reserve communities in Canada.
For more information consult with your mortgage broker, or review the CRA guide to taxes and housing benefits. https://www.canada.ca/en/revenue-agency/campaigns/cra-guide-taxes-housing-benefits.html
Your Journey Starts Here
Ready to take the first step? Contact us today for personalized solutions to make your first home purchase affordable and stress-free