As a first time home buyer in Alberta, there are a few federal government incentives, provincial programs or grants that you may qualify for.
First-Time Home Buyer Incentive Program
Qualified first time home buyers can apply for a 5% or 10% shared equity mortgage with the Government of Canada. A shared equity mortgage is where the government shares in the upside and downside of the property value.
To qualify:
you need to have the minimum down payment to be eligible
your maximum qualifying income is no more than $120,000
your total borrowing is limited to 4 times the qualifying income
It enables first-time home buyers to reduce their monthly mortgage payment without increasing their down payment. The Incentive is not interest bearing and does not require ongoing repayments. More details
Note:-You have to repay the Incentive after 25 years or if the property is sold, whichever happens first.
First-Time Home Buyers' (FTHB) tax credit
To assist first-time homebuyers with the costs associated with the purchase of a home (such as legal fees, disbursements and land transfer taxes), the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009. More details
Borrow from RRSP
The Home Buyers’ Plan (HBP) program for first-time home buyers - The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $35,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. More details
GST Credit New Housing Rebate
As a first time home buyer, the new housing rebate is available if you build or buy a new house. This rebate allows you to recover a part of the GST or the federal part of the HST that you paid on the purchase price or cost of building a new house. Eligible home buyers who meet the income thresholds for receiving this credit don’t have to apply for it. To qualify, home buyers must be at least 19 years old, be married or have a common-law partner, and be living with at least one child. Your income level on the previous year’s income tax return will determine whether you qualify to receive the tax credit. More details
Edmonton First Place Home Ownership Program
To help people who meet certain income limitations to purchase a first home. Certain builders participate in the program in various areas of the city, so you cannot select just any home and qualify. These properties usually will consist of townhomes and condominiums. Once you have qualified for a mortgage, you then can apply to the First Place program. You must agree to live in the condominium unit for at least five years. More details
PEAK Program
The Public, Essential, and Key (PEAK) program will give low-income people help with finding the funds for a down payment on a first home. After you’ve qualified for your mortgage, PEAK helps you obtain a second mortgage that provides some money for your down payment up to a maximum 5% of the purchase price on the property.
The first five years of payments on this second mortgage are interest free, which is a great feature. You will need to meet income restrictions to qualify. More details
CMHC Green Home Program
Receive a refund of as much as 25% of your home mortgage insurance premium when remodeling an existing home to install energy efficiency features.You’ll need to apply for the CHMC Green Home program, and you may need to allow an inspection of the home’s energy efficient features before and after the remodeling work. More details
Alberta Solar Energy Program
Eligible home owners in Alberta who install solar photovoltaic (PV) systems on their homes may qualify for the financial incentives. More details
Alberta Appliance Replace Program
When you replace an old appliance with an energy efficient appliance, you may be able to qualify for additional rebates of up to $75 for one appliance or $150 for two appliances. More details
Alberta Home Improvement Rebate Program
When you perform renovations to your home that result in energy savings, you may receive some of what you spent on the work in the form of a rebate. Details available at the Energy Efficiency Alberta web site. Rebate amounts depend on the amount of energy savings you receive. More details
Residential Access Modification Program
If you need to make renovations to the home to make it safer for someone with a physical disability, you may qualify for the Residential Access Modification Program (RAMP).
This program provides a grant of up to $7,500 annually for those Albertans who meet certain income guidelines. More details
For Calgary – Attainable Homes Calgary Program
For Calgary residents, it provides help with finding money for a down payment. In this program, you will have to move into a home in one of the development areas associated with the program, You’ll then pay a $2,000 down payment, and the program will make up the difference. When you sell the home later, you must give a portion of the proceeds back to the program. More details
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