How First-Time Homebuyers Can Save Money
It’s a great time to be a first-time homebuyer in Alberta, with our real estate market continuing to be a great investment, mortgage rates still at historic lows and our government offering a number of money-saving options for first-time buyers.
Both the federal and provincial governments offer a number of grants and rebates for first-time buyers, so you can finally purchase your first home. Here’s a list of money-saving resources and options if you’re a first-time homebuyer:
- Canada Revenue Agency Homebuyer Plan: first-time homebuyers have the opportunity to use their RRSP contribution towards a down payment, up to $25,000. As long as a contribution was made more than 90 days prior, and they pay it back over a 15-year period, first-time buyers are eligible. More information can be found here.
- First-Time Homebuyer’s Tax Credit: if a homebuyer has not owned a home within the last four years, they may be eligible for this tax credit, given through the Government of Canada Economic Action Plan. The credit is $5,000 multiplied by the lowest federal income tax rate for that year (ex: if the tax rate is 15%, the credit value is $750). More information can be found here.
- Homebuyer privileges: homebuyers who get mortgage loan insurance via Genworth Financial or CMHC are eligible for various homebuyer privileges and programs. Visit Genworth Financial or CMHC for more information.
- You could win $50,000: a little added motivation to buy in the community of EvansRidge, if you buy in this community from now until October 31, 2014, you’ll be entered to win $50,000. That money would really come in handy for your first home! More information can be found here.
If you’re looking for more information on the homebuying process, check out our resources online here. And be sure to tweet us if you have any questions about what homes we have available, perfect for first-time homebuyers.