First-Time Home Buyer Mortgages in Kitchener-Waterloo
We’ll make buying your first home easy.
Doing anything for the first time can be challenging — especially when it’s something as life-changing as buying your first home.
At The Mortgage Centre KW, we are here to help you every step of the way with a first-time home buyer mortgage. Our team of specialists will provide you with all the information, advice, and reassurance you need to make the right decision. We’ll ensure that everything proceeds smoothly, quickly, and effortlessly.
First-Time Home Buyer Mortgage Programs in Ontario
There are a wide range of programs available to first-time home buyers in Ontario, but the best program will depend on your specific financial situation. Learn more about the most popular programs below — or reach out to our team for advice on determining the best option for you.
First Time Home Buyer Incentive
The First-Time Home Buyer Incentive is a Government of Canada program designed to help people across Canada purchase their first home. In order to make home ownership more affordable, the program will contribute 5 or 10% of the home purchase price towards your initial down payment.
The incentive is similar to a second mortgage on your home. You are expected to pay back the same percentage of the home’s value, either once you sell it or within a 25-year period. The incentive program is available to Canadian citizens with a household income below $120,000 through Canada Guaranty, CMHC, or Genworth. There are further requirements that need to be met in order to qualify for the incentive program. Learn more about these requirements by following the link below.
Home Buyer’s Plan (HBP)
The Home Buyers’ Plan (HBP) is a Government of Canada program that allows first-time home buyers to withdraw up to $35,000 from their registered retirement savings plans (RRSPs) to buy or build a home in Canada. The HBP can be used towards the purchase of single-family homes, semi-detached homes, townhouses, condominium units, and apartments.
In order to qualify for the HBP, you must intend to occupy the new home as your primary residence within a year of buying or building it. You have up to 15 years to repay the amount you withdrew to your RRSP. Click below to learn more about the HBP and how it impacts your RRSP contributions and deduction limit.
Land Transfer Tax Refund for First-Time Homebuyers
The Land Transfer Tax Refund is a Government of Ontario program that allows first-time home buyers to apply for a refund on the land transfer tax associated with their purchase. Land transfer taxes typically apply to all transfers of land in Ontario and this program is designed to reduce this burden on new homeowners.
First-time homeowners can expect to receive a maximum refund amount of up to $4,000, depending on whether they are purchasing the home themselves or together with a partner or family member. In order to qualify, you must be at least 18 years of age and you must intend to occupy the home as your primary residence within nine months of the transfer. Learn more about the requirements of this tax refund below.
Affordable Home Ownership Program
The Affordable Home Ownership Program is a Region of Waterloo program that is designed to help renters become first-time homeowners, by offering a contribution of a 5% loan towards a downpayment. The loan is interest-free for 20 years or until you sell your home, then you will be required to pay back the principal amount plus a 5% increase in value.
To be eligible for the program, you must be currently renting a home and you must have resided in the Waterloo Region for the last year. You must also be planning to buy a home in the Waterloo Region worth $425,000 or less and have a household income below $96,000. ind details on applying for the program by following the link below.
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