Here are some notable programs for first-time homebuyers in Canada:
Canada-wide programs:
The First-Time Home Buyer Incentive (FTHBI) is a program introduced by the Canadian government to assist first-time homebuyers in purchasing a home. The FTHBI enables eligible buyers to finance a portion of their home purchase through a shared equity mortgage. The government contributes either 5% or 10% towards the purchase price, which reduces the overall mortgage amount and monthly mortgage payments for the buyer. The program is designed to help make homeownership more affordable and accessible for first-time buyers. It's important to note that the FTHBI has specific eligibility criteria and other requirements that must be met to participate in the program.
The Home Buyers' Plan (HBP) is a program in Canada that allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plans (RRSPs) to use towards the purchase of a home. The HBP enables eligible individuals to withdraw up to $35,000 from their RRSPs on a tax-free basis, providing a source of down payment funds. The withdrawn amount must be repaid to the RRSP over a period of up to 15 years, with specific annual repayment amounts required. The HBP is designed to assist first-time buyers in achieving homeownership by utilizing their RRSP savings without incurring immediate tax liabilities. It's important to review the program's eligibility criteria, repayment requirements, and other details outlined by the government to participate in the Home Buyers' Plan.
In Budget 2022, the Canadian government proposed the Tax-Free First Home Savings Account (FHSA), aiming to assist first-time homebuyers. The FHSA allows tax-free savings of up to $40,000 and functions similarly to a combination of Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs). The FHSA design features include an $8,000 annual contribution limit and a $40,000 lifetime contribution limit. Draft legislative proposals have been released for public comment, covering various aspects of the FHSA design. The FHSA is expected to be available for contributions in 2023, with individuals being allowed to contribute the full annual limit regardless of the actual opening date. The FHSA has specific eligibility requirements for opening and closing accounts, qualified investments, contributions, withdrawals, transfers, treatment of income, reporting requirements, and other regulations. It should be noted that the FHSA operates independently of the existing Home Buyers' Plan (HBP).
It's important to note that program eligibility criteria, terms, and conditions can vary, so it's recommended to review the specific details and requirements of each program.