THE BENEFITS OF BEING A FIRST TIME HOME BUYER
Cost of entry is slightly less.
We were recently asked the following questions: what are the benefits of being a first time home buyer using 5% down payment versus someone who has purchased a home before using a 5% down payment?
Thanks for your question, Jen!
The 5% down payment is not any more of a benefit to a first time home buyer over someone who has already purchased a property. In fact, anyone can purchase a home using a 5% down payment, of course there may be some restrictions dependent on the property, its use or the client’s credit.
The benefits to a first time home buyer are:
- To make it more affordable to purchase a home, the First-time Home Buyers’ Tax Credit will provide up to $750 in tax relief for individuals.
- Ability to use their RRSP for down payment.
If someone has not owned a property for 5 years they are also eligible to use their RRSPs for down payment.
