Are you thinking about buying your first home? Congratulations! This is a major milestone, and we want to make sure you know about all the fantastic first-time homebuyer benefits available to help you save money and make the home-buying process smoother. Let’s dive into some incredible programs and incentives designed just for you.

1. New or Pre-Construction Homes: 30-Year Amortization

First-time buyers interested in purchasing a new build or pre-construction home can take advantage of a 30-year amortization period. What does this mean for you? A longer amortization period allows you to spread out your mortgage payments over a longer time, resulting in lower monthly payments. This option can make homeownership more affordable, especially when compared to the standard 25-year amortization period.

2. Enhanced Mortgage Default Insurance Coverage

The Canada Mortgage and Housing Corporation (CMHC) has increased its mortgage default insurance coverage, now insuring homes worth up to $1.5 million (up from $1 million). This expanded coverage makes it easier for first-time buyers to qualify for insured mortgages, even in higher-priced markets. This update is a game-changer for many Canadians looking to enter the housing market with less than a 20% down payment.

3. The Home Buyers’ Plan (HBP) – Access Your RRSP for Your Down Payment

Did you know you can use your RRSP savings for your down payment? The Home Buyers’ Plan (HBP) allows first-time homebuyers to withdraw up to $60,000 from their RRSPs (Registered Retirement Savings Plans) to put toward buying a home. Even better, if you’re purchasing with a partner who also qualifies as a first-time buyer, you can access up to $120,000 combined. This program gives you a significant boost in securing your dream home.

4. First Home Savings Account (FHSA) – Tax-Free Savings for Your Down Payment

The First Home Savings Account (FHSA) is a tax-advantaged account designed to help first-time homebuyers save for their down payment. You can contribute up to $8,000 per year, with a lifetime maximum of $40,000. The best part? You won’t pay taxes on the interest earned in this account. It’s an excellent way to build your savings faster while keeping more of your money working for you.

5. First-Time Homebuyer Property Transfer Tax Exemption

Buying your first home can be expensive, but there’s good news: first-time buyers may be eligible for a property transfer tax exemption. This exemption can save you thousands of dollars, depending on the purchase price of your property. Here’s how it breaks down:

• For homes valued at $500,000 or less, you can claim a full exemption, meaning you pay no property transfer tax.
• For homes priced between $500,000 and $835,000, you can claim an exemption amount up to $8,000.
• For homes valued between $835,000 and $860,000, the exemption amount is gradually reduced, potentially saving you up to $15,200.

6. Land Transfer Tax Rebates – More Savings Across Provinces

In certain provinces and cities, first-time homebuyers can benefit from land transfer tax rebates. If you’re purchasing in Ontario, British Columbia, Prince Edward Island, or the City of Toronto, you may qualify for these rebates, which can significantly reduce your upfront costs. Be sure to check the specific requirements in your area, as they can differ.

Get Started on Your Homeownership Journey Today!

These benefits are designed to make buying your first home more accessible and affordable. From longer amortization options and enhanced insurance coverage to tax-free savings accounts and transfer tax exemptions, there are plenty of ways for first-time buyers to save.

Ready to take the next step? Contact Danny Benjamin today to learn more about these programs and find out how you can maximize your benefits as a first-time homebuyer. Let’s turn your dream of owning a home into a reality!

Phone: (289) 455-8801

Email: dannybenjamin@dominionlending.ca

With recent interest rate cuts by the Bank of Canada, now is a great time to understand how these changes might impact your mortgage. Let’s dive into how these shifts could benefit you — whether you’re a current homeowner, looking to renew, or considering purchasing a home.

### Variable-Rate Mortgages: More Cash Flow in Your Pocket
If you have a variable-rate mortgage, the recent rate cuts mean you’re likely to see a decrease in your monthly payments, freeing up more cash each month. For example, if you have a mortgage balance of $750,000 at a previous rate of 5.95%, your estimated monthly payment was around $4,809. With the new rate of 5.45%, your monthly payment would be closer to $4,583 — saving you about $226 per month ($30 per $100,000 balance). These extra savings can help increase your cash flow and make room in your budget.

*(Example rates based on Prime minus 0.50%, with old prime at 6.45% and new prime at 5.95%.)*

### Fixed-Rate Mortgages and Renewals: New Opportunities on the Horizon
If you’re on a fixed-rate mortgage or have a renewal coming up, the Bank of Canada’s rate cuts can still impact your options. While fixed-rate mortgages don’t automatically adjust to rate changes, this lower interest rate environment could mean more favorable terms when it’s time to renew. For many homeowners, this means greater borrowing power, allowing you to make your money stretch further.

It’s also worth noting that lower rates introduce more variable-rate options into the marketplace, which may offer you flexibility if you’re considering switching from a fixed to a variable-rate mortgage.

### First-Time Buyers: Expanded Borrowing Power
For those entering the housing market, these rate cuts are especially good news. Lower rates mean increased borrowing power, which can open up more opportunities to find your ideal home. A reduced monthly payment makes homeownership more accessible, allowing first-time buyers to allocate more comfortably toward their mortgage.

### Future Rate Predictions: Even More Savings Ahead?
The Bank of Canada has one more rate decision dates this year, in December. Many experts predict further quarter-point cut, potentially bringing the overnight rate down to 4.0% by the end of the year, with possible reductions to as low as 2.75% next year. This trend could provide even more benefits for homeowners, prospective buyers, and those nearing mortgage renewal.

### Remember, Rate Isn’t Everything
While interest rates are a key part of any mortgage, it’s essential to look at the full picture. Factors such as the type of mortgage, down payment amount, payment schedule, and amortization period can all impact affordability and financial stability. Working with an expert can help ensure you’re making the right decision for your unique situation.

### Let’s Chat About Your Options!
If you’re curious about what these changes mean for you specifically, reach out! I’m here to help you understand how rate shifts might impact your mortgage, borrowing power, and overall financial picture.

Ready to explore your options? Contact me today, and let’s discuss how you can make the most of the current mortgage landscape!