Government Programs for Buyers

> Programs for First Time Home Buyers

> RRSP Home Buyers' Plan

The Home Buyers' Plan (HBP) is a federal program that allows you to withdraw up to $25,000 tax-free from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $25,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal.
For more information on the HBP.

> CMHC 5 per cent Down Payment Program

With as little as five per cent down payment, from personal or other sources (see below for eligible other sources), all home buyers have access to mortgage insurance enabling then to enter the housing market, as long as they can manage the costs of home ownership.

• Mortgage insurance for 95 per cent mortgages is available to both first time and repeat home buyers. Homebuyers have the option of using personal sources, such as savings or gifts, or other sources, such as lender incentives, borrowed funds/credit, or sweat equity (the amount of money spent to help construct the home) for the required five per cent down payment.

• Buyers using the Program may consume up to 32 per cent of their gross monthly household income for payments on loans for 95 per cent of the lending value of the house where the five percent down payment comes from other sources will be 2.9 per cent of the mortgage loan. This premium can be added to the mortgage.

• The maximum amortization period is 25 years.

• Borrowers are required to demonstrate, at the time of application, their ability to cover closing costs equal to at least 1.5% of the purchase price.

• Where the minimum equity requirement is being met by way of a financial gift, the funds must be in possession of the borrower 15 days before making an offer to purchase.
  For more information on the CMHC 5 per cent Down Payment Program

> CMHC to Insure 30 Year Mortgages on a Pilot Basis

> CMHC Purchase Plus Improvements Program

Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.
For more information on the CMHC Purchase Plus Improvements Program

> GST New Housing Rebate

(Note: Resale homes are exempt from the GST.)
The GST/HST New Housing Rebate program provides a rebate on part of the GST or the federal part of the HST paid on the construction or purchase of most newly constructed or substantially renovated houses used as a primary place of residence.
For more information on the GST New Housing Rebate

> Land Transfer Tax Rebate Program