5 Benefits as a First-Time Home Buyer

Saving for your first home is a significant financial goal that can open the door to homeownership and provide long-term financial security. Whether you're dreaming of a cozy starter home or your forever house, embarking on this journey requires careful planning and disciplined saving.

Here's 5 main benefits that can help you save money as you start your journey as a first-time homebuyer.

1. First Time Home Buyer's Program

Potential Savings: $8,000
This program in British Columbia is designed to alleviate the burden of the property transfer tax for first-time homebuyers.
You may be fully exempted if the property value is under $500,000
You may be partially exempted if the property value is under $525,000
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2. Home Buyer's Tax Credit

Potential Savings: $750
This federal non-refundable tax credit is a targeted initiative aimed at promoting and facilitating affordable homeownership. Eligible recipients have the opportunity to claim up to $10,000, resulting in a one-time $1,500 tax credit, which can effectively reduce their tax liability by $750.
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3. First Home Savings Account

Potential Savings: Savings based on tax reductions and investment
The first home savings account is a financial product that may offers tax benefits upon deposit like an RRSP. The funds saved in such an account can be used towards a down payment, and interest or earnings on the account are often tax-free when withdrawn for the purpose of buying a first home.
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4. Home Buyer's Plan

The Home Buyer's Plan (HBP) is a Canadian government program that allows eligible first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to use for their home purchase without incurring taxes. This withdrawal must be repaid to the RRSP over a 15-year period.
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5. First-Time Home Buyer's Incentive

The First-Time Home Buyer Incentive is a Canadian government program that helps eligible first-time homebuyers by providing them with a shared-equity mortgage. This means the government shares in the ownership and, in turn, helps lower monthly mortgage payments, making homeownership more affordable.
You may be able to borrow from 5-10% of the property value
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