First Time Home Buyer Mortgage

Searching for your first home? You're not alone! With budget considerations and homeownership goals in mind, partnering with our experienced Ottawa mortgage brokers can alleviate financial burdens and simplify the transition to a new chapter.

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As a first-time home buyer, The Mortgage Advisors can guide you through the mortgage process, from paperwork to choosing the right mortgage product. We'll help you find incentives, programs, and offers for first-time buyers, ensuring you make an informed decision and secure your dream home.

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Why Work with a Mortgage Broker?

When you work with a certified and fully licensed mortgage broker, it’s easier to narrow down choices and find the right solutions for your budget and needs. Feel free to ask questions, clear the air on terminology, and get to know the mortgage products available from lenders today, as our team is happy to provide ample insights and recommendations. Not only that, but working with a mortgage broker means having an experienced, certified professional who knows the market by your side, helping you apply for pre-approval, utilizing lender connections, and securing the best possible rates.

  • We can assist with the following and more:
  • Review of credit qualifications
  • Discuss your affordability and budget
  • Roadmap for optimal down payment and closing costs
  • Analyze available mortgage options and provide informed recommendations

Our team will also work closely with inspectors, lawyers, lenders, and other professionals commonly associated with home purchases, keeping you up-to-date as we move through the process. Also, feel free to use our very own Mortgage Calculator tool.

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How to Qualify as a First-Time Home Buyer in Canada

Every program available to first-time home buyers in Canada has its own unique terms and conditions. You must meet the qualification criteria in order to make use of it, though many such programs share similar criteria when it comes to your age, citizenship status, and other factors. For example, with federal programs including the First Time Home Buyers’ Tax Credit and the RRSP Home Buyers’ Plan, these options share the following requirements:

  • Applicants must be aged 18 or older
  • Applicants must either be a Canadian citizen or permanent resident
  • The property in question must be located in Canada
  • Applicants haven’t owned a home in the last four years
  • Applicants haven’t lived in a residential property owned by a married or common-law partner in the last four years
  • Applicants must prove with appropriate documentation that they have purchased the property in question
  • Applicants must use the property as their primary residence within one year of the purchase date
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Programs and Benefits for First-Time Home Buyersheader decoration

When purchasing a home for the first time, buyers tend to benefit from additional incentives. The Canadian government offers a variety of incentives for first-time home buyers in the form of tax credits, rebates, grants, and programs. Some of these benefits may also be applicable to individuals who are selling their current home and are interested in buying a new one.

First-Time Home Buyers’ Tax Credit/Land Transfer Tax Rebate

Depending on where you live, when purchasing your first home, you may be able to take advantage of tax relief options. The First Time Home Buyers’ Tax Credit, for instance, can be claimed on your annual return for the year that you purchase your home, providing a rebate of $750. First-time home buyers may also be eligible for a rebate of land transfer taxes, pending their meeting qualification requirements. The maximum rebates available will vary by location, as indicated below:

  • City of Toronto: $4,475
  • BC: $8,000
  • Ontario: $4,000
  • PEI: $2,000

Home Buyers’ Plan

The RRSP Home Buyers’ Plan allows first-time home buyers to borrow from the savings they’ve put into a Registered Retirement Savings Plan (RRSP) for a down payment. You’re allowed to withdraw up to $35,000 from your RRSPs for a down payment, which then needs to be paid back within 15 years. Of course, there’s also a risk of cannibalizing your savings, increasing the risk of financial stress at the time of retirement. Weigh the pros and cons, don’t be afraid to research this option further, and feel free to reach out to us if you’d like to discuss it in more detail.

GST/HST New Housing Rebate

When a home is built in Canada and sold, it will have GST or HST added to the sale price. The GST/HST new housing rebate reimburses part of this tax’s federal or provincial component. The rebate is only valid for use on new homes, construction of a house on land that you own, or for renovations to your existing property. While first-time home buyers tend to make use of the rebate for brand-new properties, it’s not exclusive to them.

First-Time Home Buyer Incentive

This incentive helps to reduce the cost of regular mortgage payments to first-time home buyers. It provides contributions in the form of 5% or 10% of the property’s total cost, which then needs to be repaid by the homeowner within 25 years. As a first-time buyer taking advantage of this incentive, you’ll be able to save a lot of money by the time your mortgage is fully paid off. Of course, be sure to brush up on the qualification guidelines in advance, as they can be strict.

Ready to speak to a Mortgage Advisor about your first time home buyer mortgage options?

Fill out the form below or click “Apply Now” to complete a more detailed application.

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