Take Advantage of Government Grants for Homes

Government Grants

Take Advantage of Government Grants for Homes

There are several different kinds of government programs and grants available. Here are the most important ones, especially if you are a first-time home buyer. Take advantage of government grants for homes! Click on the titles below to learn more about each program.

Canada’s First Home Savings Account (FHSA)

As of April 1st, Canadians aged 18 or older who are purchasing their first home are eligible to enroll in a tax-free First Home Savings Account (FHSA). Introduced in the 2022 federal budget, the FHSA combines elements of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP), allowing users to make tax-deductible contributions and tax-free withdrawals from the account for the purposes of saving for a home. 

Home Buyers’ Amount
You can claim a $5,000 non-refundable tax credit if you purchased a qualifying house (which could be a single-family house, semi-detached house, townhouse, condo or duplex, among other options) and you are considered a first-time home buyer.

Home Buyers’ Plan
Effective April 16th, 2024, can now withdraw $60,000 to use as a down payment for a qualifying home. This is up from the current limit of $35,000. For withdrawals made between January 1, 2022, and December 31, 2025, repayment will also change giving home buyers five years to begin repayment up from the original two-year requirement.

GST/HST New Housing Rebate
If you purchased a new or renovated home as a primary residence, or renovated your home, you can recoup part of the tax you paid on the purchase price or build.

Canada Greener Homes Loan 
You may be eligible for grants or interest-free loans (up to $40,000) to help make your home more energy efficient.

If you are a first-time purchaser, in addition to knowing what incentives you can take advantage of, it is important to know your financing and mortgage options, not only the interest rate options but also the terms that are suited to your situation. i.e. 30 year amortization, is the mortgage portable if you sell and are there any financial penalties if you end the mortgage early. We can connect you with our mortgage advisor, Karen Lemieux of Mortgage Brokers Ottawa, for up-to-date mortgage information and mortgage options. See Karen’s latest update on types of lenders in our September newsletter.

As experienced Realtors® in Ottawa and surrounding areas, we are here to answer all your questions! We will inform you about the present market and the value of comparable homes in the neighborhood(s) you are interested in. We have the expertise and contacts to assist you with your home purchase!