Homebuyers in Canada may choose from a variety of financial incentives the national government offers. These include first-time homebuyer incentives, tax credits, and rebates as well as grants and loans. As the name suggests, the First-Time Home Buyer Incentive program supports people purchasing a home for the first time. Fundamentally, this is a shared equity mortgage with the Canadian government. The incentive enables first-time homebuyers who have saved the minimum down payment for an insured mortgage to borrow 5 percent or 10 percent of the home’s purchase price from the government. The borrowed amount depends on what property prospective homebuyers would like to purchase. Existing homes and new and existing mobile or manufactured homes are eligible for 5 percent, while new constructions can get 5 percent or 10 percent. Besides the people who have never purchased a home, the government defines first-time homebuyers as people who have not resided in a home owned by either them or their marital or common-law partners for the last four years, and people whose marriage or common-law partnership has broken down recently. In addition to these criteria, incentive applicants must also meet several other requirements related to their total annual income, citizenship, and total borrowing amount. If approved for the incentive, homebuyers must pay back the same 5 percent or 10 percent after 25 years or when they sell the home. The Home Buyers’ Amount is an example of a tax credit program offered by the Canadian government. It provides buyers who have acquired a qualified property during the year with a $5,000 non-refundable income tax credit. The federal tax relief for eligible individuals could amount to $750. Successful applicants must meet two main eligibility criteria. The first stipulates that either the individual or their marital or common-law partner must have purchased the qualifying home. The second requires that the individual not reside in another property possessed by them or their partner in the year of or in any of the four years preceding the purchase.

1. Government of Canada Financial Support
Programs for Homebuyers
Stuart Hansen China

2. Introduction
Homebuyers in Canada may choose from a variety of financial incentives the
national government offers. These include first-time homebuyer incentives, tax
credits, and rebates as well as grants and loans.

3. As the name suggests, the First-Time Home Buyer Incentive program supports
people purchasing a home for the first time. Fundamentally, this is a shared
equity mortgage with the Canadian government. The incentive enables first-
time homebuyers who have saved the minimum down payment for an insured
mortgage to borrow 5 percent or 10 percent of the home’s purchase price
from the government.

4. The borrowed amount depends on what property prospective homebuyers
would like to purchase. Existing homes and new and existing mobile or
manufactured homes are eligible for 5 percent, while new constructions can
get 5 percent or 10 percent.

5. Besides the people who have never purchased a home, the government
defines first-time homebuyers as people who have not resided in a home
owned by either them or their marital or common-law partners for the last four
years, and people whose marriage or common-law partnership has broken
down recently. In addition to these criteria, incentive applicants must also
meet several other requirements related to their total annual income,
citizenship, and total borrowing amount. If approved for the incentive,
homebuyers must pay back the same 5 percent or 10 percent after 25 years or
when they sell the home.

6. The Home Buyers’ Amount is an example of a tax credit program offered by
the Canadian government. It provides buyers who have acquired a qualified
property during the year with a $5,000 non-refundable income tax credit. The
federal tax relief for eligible individuals could amount to $750.

7. Successful applicants must meet two main eligibility criteria. The first
stipulates that either the individual or their marital or common-law partner
must have purchased the qualifying home. The second requires that the
individual not reside in another property possessed by them or their partner in
the year of or in any of the four years preceding the purchase.

8. Qualifying homes are considered those located in Canada and registered in
the individual’s or their partner’s name, observing all related stipulations. It
applies to both existing homes and new constructions.

9. The Home Buyers’ Plan (HBP) program enables people to use their registered
retirement savings plans (RRSPs) for purchasing or building a qualifying home
for themselves or a related person with a disability. Eligible candidates can
withdraw a total of $35,000 from their RRSPs within one calendar year. They
must return the sum within 15 years.

10. Eligibility requirements include being a Canadian resident and first-time
homebuyer and having a written agreement for buying or building a qualifying
home. The HBP allows for multiple participations provided individuals have
repaid the withdrawn amount as of January 1st of the year of the new
withdrawal and they meet all other eligibility criteria.

11. Homebuyers can partially rebate their goods and services tax (GST) or
harmonized sales tax (HST) through the GST/HST New Housing Rebate
program. It is applicable to taxes paid for purchasing or building a new home
or a major addition to an existing home, conducting substantial renovations,
or converting a non-residential property into a residential one.

12. Another example of the grants and loans provided by the Canadian
government is the Canada Greener Homes program. It aims to support up to
700,000 Canadian homeowners with $2.6 billion over seven years to perform
energy efficiency renovations. Grants totaling $5,000 and $600 for energy-
efficient retrofits and financial aid for the country’s EnerGuide home energy
evaluation, respectively, will be available from 2021 onwards.