First time home buyer plans

Posted by Gurpreet Ghatehora on Thursday, March 5th, 2015 at 6:30am.

Being a first time home buyer is no easy thing. Scrimping and saving, on top of tightening the purse strings – not to mention the time you’ll spend house hunting and the possible bidding wars that may ensue. Isn’t it nice to know that you don’t have to do it all alone?Using Your RRSPs to Buy a Home - The Home Buyers' Plan (HBP)

The Home Buyers' Plan is a program that was established by the federal government that allows an individual (qualified as a first-time home buyer) to withdraw up to $20,000 tax-free from their RRSPs (that's $40,000 per couple) to buy or build a home, as long as it will be your primary residence. You can only use this program one time, and you must be a resident of Canada to benefit from it.

Participation in this programs requires that you repay the amount you withdrew within a 15-year period, in the amount of 1/15 per year. If you repay less than the recommended amount, the difference will be added to your taxable income on your income tax return.

All-Inclusive-Mortgage (A.I.M.)

An AIM mortgage is designed to meet all the needs of purchasing a home, all in one tidy package. Here are the benefits for:

Purchases - it includes your lawyer's legal fees and standard disbursements to close the purchase and mortgage; Title transfer; Title Insurance from LandCanada; CMHC application fee or Appraisal fee; 1% Cash-Back to cover Land Transfer Tax; Registration of Deed and Mortgage.

Refinances - it includes your legal fees and standard disbursements to prepare and close the mortgage; Title Insurance from LandCanada; CMHC application fee or appraisal fee; 1% Cash-Back; Registration of the new first mortgage; Registration of discharge of existing first and second mortgage. The minimum term available is a 5 year term. Please call a mortgage specialist for further details.

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