approvU for First Time Buyer Mortgage

A First-Time Home Buyer Loan refers to programs and incentives designed to help first-time home buyers purchase their first home. These programs aim to make homeownership more accessible and affordable for those entering the housing market for the first time. Key features often include:

1. Home Buyers’ Plan (HBP): Allows first-time buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) tax-free to use as a down payment. Couples can withdraw up to $70,000 combined. The amount withdrawn must be repaid within 15 years to avoid tax penalties.
2. First-Time Home Buyer Incentive: Offers 5% or 10% of the home’s purchase price toward a down payment, effectively reducing mortgage carrying costs. This program is a shared equity mortgage with the Government of Canada, meaning the government shares the upside or downside of the property value upon selling.
3. Land Transfer Tax Rebates: Some provinces offer land transfer tax rebates to first-time home buyers, which can significantly reduce or eliminate the land transfer tax cost.
4. GST/HST New Housing Rebate: Available for those purchasing a newly built home or undertaking significant renovations, this rebate can help recover some of the GST or the federal part of the HST paid.

To qualify as a first-time home buyer in Canada, you must not have lived in a home owned by yourself or your spouse/common-law partner in the year of the purchase or the four preceding years. These programs are designed to reduce financial barriers, making it easier for first-time buyers to achieve homeownership.

A first-time buyer in Canada refers to a potential house buyer or partner (spouse or common-law partner), who in the past four years, did not own a house.

Federal, provincial, and local governments offer special programs to help first-timers buy a house. These programs include the Homebuyer Plan, Tax Credit, and Down Payment Assistance.

No, approvU is not a mortgage lender.

approvU is an online distributor of mortgages. We do not replace mortgage lenders. We make it easy for you to shop and get the right mortgage easily and conveniently. approvU allows you to shop for mortgages across multiple lenders, so you won’t miss out on the lowest mortgage rate.

Not sure where to start with your first house purchase? You’re in the right place, because approvU is the tool you need to shop the market for low-rate mortgages that suit your unique needs and situation.

Use the below points as your checklist to purchase your first house:

– Use mortgage planning tools to determine how much house you can comfortably afford with your current income and credits

– Consider paying down some debts to boost your affordability and improve your credit score

– You will need money to put down for the house purchase (down payment)

– List down your house ownership needs: where you want to buy, accessibility to work, type of house, etc.

– Get pre-approved. The approvU process takes under 6 minutes, and sends an instant pre-approval download from your dashboard.

– Go house shopping

– Complete your mortgage when you settle on the house of your choice

Yes, first homebuyer incentives, credits and grants apply to condos – as well as townhouses, semi-detached, and detached houses.

A condo can be a good choice to jump on the house ownership bandwagon. Also, there are fewer worries about upkeep and renovation. However, owning a condo will restrict your ability to make changes to the exterior of your unit.

Land Transfer Tax Refund: There is a land transfer tax rebate offered by a few provincial and municipal governments to first-time homebuyers. You can get up to $4,000 if you’re buying your first home anywhere in Ontario, and an additional $4,475 if Toronto is where you want to live.

Home Buyers Plan (RRSP Plan): This program allows you to withdraw up to $35,000 from your registered retirement savings plans (RRSPs) to buy or build a qualifying home tax-free.

Homebuyers’ Tax Credit: You can qualify for up to $750 when you buy a qualifying home as a first-time buyer.

First-time Home Buyer Incentive: You can use this program to reduce your monthly mortgage payments without adding to your financial burdens. It is a shared-equity program offered by the Federal Government. Learn more about the program

To be eligible for the First-Time Home Buyer Incentive, home buyers must:

•  Must be at least 18 years old
• Must be a first-time home buyer
• Must be a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada

Most of the first-time buyer incentives from the federal and provincial governments instantly get applied once you meet the first-time buyer criteria. Your lawyer will handle this on your behalf.

For the Shared-equity program, there is a separate application you will have to complete. Your approvU Mortgage Expert can help guide you.

First-time buyer offers from your local or municipal governments have the institution.

Again, you’ll need to do your research. You can certainly talk with your designated approvU Mortgage Expert for advice and guidance.