Home Buyers' Plan (HBP)
- To help you come up with a down payment, you may be eligible for the Home Buyers’ Plan (HBP). The Home Buyers' Plan allows you to withdraw up to $35,000, tax-free, from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. You have up to 15 years to repay the amounts you withdrew.
- First-time home buyers purchasing a home jointly with a spouse or partner can now each withdraw up to $35,000 from their own RRSP under the HBP, for a total down payment of $70,000.
- For complete details on how the plan works, here is a direct link to the: Canada Revenue website.
First Time Home Buyer Incentive
First Time Home Buyers may be eligible to finance a portion of their home purchase with a 5% or 10% shared equity mortgage with the Government of Canada, meaning the government shares in the gains and losses of your home’s value as it fluctuates over time. Through this incentive, CMHC will offer 10% toward the down payment for a new home, and 5% for resale homes, interest free! Briefly, here’s how the Incentive works:
- To be eligible, you must have the minimum down payment (5%), your combined qualifying income cannot exceed $120,000 and your total borrowing must be less than 4 times your qualifying income
- Repayment of the Incentive is based on the property’s fair market value and the percentage of the shared equity mortgage. For example, if the shared equity mortgage was 5% of the home’s purchase price of $200,000, or $10,000, and at the time of repayment, if your property’s fair market value is calculated as $300,000, your repayment amount will be $15,000. If your property value decreased to $100,000 at the time of repayment, then your repayment amount will be $5,000.
- Repayment of the Incentive must be made when the property is sold or after 25 years, whichever comes first. Repayment may also be made at anytime prior to this without penalty.
- For more information, please see the First-Time Home Buyer Incentive.
Home Buyers Tax Credit (Home Buyers Program)
- The Home Buyers’ Program offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired during the year.
- The Home Buyers’ Tax Credit (HBTC) is a non-refundable income tax credit that allows first-time purchasers of homes, and purchasers with disabilities, to claim up to $5,000 in the year when they purchase a home. For an eligible individual, the credit will provide up to $750 in federal tax relief.
- To be eligible for the Home Buyers’ Tax Credit, you must meet both of these criteria:
- You or your spouse or common-law partner purchased a qualifying home.
- You are a first-time home buyer, which means that you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
HST New Housing Rebate
For information on the GST/HST New Housing Rebate, visit GST/HST New Housing.
You may qualify for a rebate of part of the GST or HST that you paid on the purchase price or cost of building your new house, on the cost of substantially renovating or building a major addition onto your existing house, or on converting a non-residential property into a house. GST/HST New Housing provides all of the details on this rebate.