Thinking about buying your first home? Feeling overwhelmed? Not a problem. Getting a mortgage on a new home doesn’t have to be a terrifying experience. Tim Lacroix and the rest of our team are experts with years of experience. We will help you achieve your homeownership dreams by helping you select a mortgage plan that is easy to digest.
Every year we help dozens of people achieve their homeownership dreams in Calgary. We not only walk you through the basics we are also well versed on all the little “extras” that can make buying your first home easier. We will not only help you get approved for a mortgage but also help you apply for Canada’s first-time home buyer’s tax credits and grants, which can help you reduce the cost of your mortgage significantly.
To begin with we will sit down and figure out how much you can afford using our mortgage calculator. Once we have helped you get pre-approved you will have the confidence you need to go out into the Calgary housing market to search for your first home. Call us today at Call us today at 403.648.1541.
To help get you started, here are few of the useful cost-saving programs, rebates and credits available to first-time home buyers:
Home Buyers’ Tax Credit:
The federal government will give you up to $750 if you apply for the Home Buyer’s Tax Credit in the same tax year that you buy your first home.
For more information see the Canada Revenue Agency’s website page on the Home Buyers’ Tax Credit.
First-Time Home Buyers’ RRSP Plan
First-time home buyers can take up to $25,000 out of their RRSPs in order to buy or build a house for themselves or a relative with a disability. You will need to repay the amount you withdrew within 15 years, with a minimum annual repayment of one-fifth the amount you withdrew. If you withdraw the full $25,000, the minimum repayment will be $1,667 per year. If you do not repay the minimum each year the balance remaining will be added to your income and becomes taxable. In order to qualify for the Home Buyers’ RRSP Plan, you can’t have owned a house within the last four calendar years.
For more information see the Canada Revenue Agency’s website page on the Home Buyers’ RRSP Plan.
Alberta Land Transfer Tax
Alberta is unique amongst the provinces because we do not have a land transfer tax. Instead, the province charges a nominal fee for title registration and mortgage registration:
Title Registration Fee: There is a base fee of $50 plus an additional $1 for every $5,000 of the fair market value of the property (rounded up to the nearest $5,000).
= $50 + $1 for every $5,000 of the fair market value
Mortgage Registration Fee: There is a base fee of $50 plus an additional $1 charge for every $5,000 of the mortgage loan (rounded up to the nearest $5,000).
= $50 + $1 for every $5,000 of the mortgage loan
For example: A home purchase of $350,000 would incur a total fee of $240.
$50 + (($350,000 / $5,000) x $1) plus $50 + (($350,000 / $5,000) x $1)
If you have any questions about these taxes, credits and rebates call Tim Lacroix and the rest of our team today at 403.648.1541..