FIRST-TIME HOMEBUYERS2018-10-21T02:37:55+00:00

First Time Homebuyers

What benefits do I have available to me as a first time homebuyer?

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Dream Key Mortgage Agents work closely with first time homebuyers to ensure they have an in-depth understanding of their mortgage’s terms and conditions in addition to the entire purchasing process months before the transaction and long after. Our trusted experts will guide you through each step, educating you on current market conditions and making recommendations where necessary to ensure you are always in the right hands while understanding the details of Toronto’s fast-paced real estate market. For many, a mortgage loan is often the largest loan amount they will ever receive so being prepared and connected with right people is the key to success.

Tax Rebates and Benefits

In Ontario, first time homebuyers have a variety tax rebates and benefits available to them which can result in significant savings. A few of these benefits are listed below:

Land Transfer Tax Refund

First time homebuyers may be eligible for all or part of the Ontario Government’s Land Transfer Tax Rebate. Your rebate will be based on the amount paid for the land or on the fair market value of the land and has a limit of $4,000 – meaning you are not paying land transfer tax on the first $368,000 of the purchase price. To claim a refund, you must meet certain requirements, so it is important to discuss the amount you qualify for with your Real Estate Lawyer.

HomeBuyer’s Plan

As a first time homebuyer, you can take advantage of the HomeBuyer’s Plan which allows you to withdraw up to $25,000 from your RRSP to go toward your down payment. This is an interest-free loan and must be paid back over 15 years. If you are making a purchase with your spouse or partner who is also a first time homebuyer, you can withdraw up to $50,000 to go toward your down payment.

First Time HomeBuyer’s Tax Credit

If you have not owned a home within the last four years, you may be eligible for a tax credit which is calculated based on federal income tax rates. For a full understanding of what First Time HomeBuyer benefits are available to you, consult your Real Estate Lawyer, or let us get you in touch with the right Law Firm today.

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Frequently Asked Questions

At Dream Key Mortgage, we are focused on making your experience as seamless as possible. If you are not currently working with a real estate professional, we have a team of trusted and experienced business partners who can help you navigate through Toronto’s dynamic real estate market, while working closely with our team to ensure your best interest is always protected. Get in touch with Dream Key Mortgage today to discuss the right real estate partners for you.

As a purchaser, compensation for realtor services is the responsibility of the Seller and not the Buyer, which means that having a Realtor represent you in the purchase of real property is absolutely free!

When initially offering on a property, it is recommended to put down a minimum of 5% of the purchase price as a “deposit” which will be due within 24 hours of acceptance of an offer. While your deposit will form part of your down payment, it is important to note that the deposit and down payment are two different things and your total down payment will be due at closing. Shortly before your closing date, your lawyer will walk you through all of the disclosures and terms & conditions in your Agreement of Purchase and Sale, including a statement of closings costs associated with the transfer. It is at this time where you will decide and submit the remaining funds that will contribute to your total down payment for your purchase, and the remaining balance will be your mortgage amount.

As a first-time home buyer, you’ll want to ensure that you have enough capital saved up and accessible to cover the initial down payment, as well as various closing costs associated with your purchase. As mandated by the Canadian Government, a minimum of five percent of the purchase price is required for any down payment of property; however, depending on the circumstance and investment goal, it is recommended to put down as much as possible to minimize the costs associated with insured mortgages.

If you do not have enough of the down payment readily accessible, you can withdraw up to $25,000 from an RRSP using the Home Buyers Plan (HBP) interest-free and must be paid back within 15 years. The down-payment can also be borrowed with an unsecured borrowing credit facility like a personal line of credit or a personal loan. There are borrowed down-payment programs available from insurance companies which are known as “flex down”. For more information on borrowing options, consult a Dream Key Mortgage Agent.

Prior to contacting a realtor and before looking for properties, the first thing you should do is to get a Mortgage Pre-Approval. Once you know your home buying price range, you can efficiently start your search.

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Prior to contacting a realtor and before looking for properties, the first thing you should do is to get a Mortgage Pre-Approval. Once you know your home buying price range, you can efficiently start your search.