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There's help for first time home buyers

Want to take your first step on the property ladder, but don't know where to start? Well, your dream of home ownership may be closer than you think. As your local Coldwell Banker ® real estate professional, I can help that dream become a reality. I offer specialized help to first time home buyers in a number of ways. One of the most important is helping you put your finances together so you'll know just how much home you can really afford.

For instance, did you know that the Canadian government has a savings program to help you defer taxes while you save for a home? It's called the Home Buyers' Plan and it can help you get into your first home that much faster.

Under the federal plan, first time home buyers can borrow up to $20,000 from their RRSP to use in the purchase of their principal residence. What's more, since there's usually more than one person involved in a home purchase, there's also a combined maximum of $40,000 that can be withdrawn from individual RSPs to apply against the down payment. As long as each purchaser doesn't exceed the $20,000 individual RRSP withdrawal limit, and the participants are first time buyers, then you're good to go. Plan participants have 15 years to repay their RRSP withdrawal without incurring any tax or withdrawal penalty.

More than 1.4 million Canadians have already taken advantage of this plan to help finance their home. Participants have borrowed $15 billion from their RRSPs to help purchase more than 746,000 homes. The Home Buyers' Plan helps to support a strong housing market and it's good for the economy. Just as importantly, it also encourages young Canadians to start saving for retirement sooner. Think about it. By using this plan to help finance your first home purchase, you don't have to wait until you've saved a down payment before taking advantage of tax deferred retirement savings. What's more, owning your own home is an important step in attaining your own financial independence.

Of course, introducing you to the Home Buyers' Plan is just one of the many ways that we can help you move up to home ownership. We can arrange for you to be pre-qualified for a mortgage, which will take away the guesswork about prices and affordability, while it increases your negotiating power with the seller. We can even help you crunch the numbers to determine your monthly mortgage payments and help you estimate your carrying costs as well as your closing costs. We'll answer all your questions, and do everything in our power to ensure that there are no surprises along the way.

Posted on Friday, September 14, 2007 at 03:20PM by Registered CommenterElaine in | Comments3 Comments

Reader Comments (3)

I really found your blog informative.

For people considering their first mortgage, they may not be aware of their insurance options. The bank offers mortgage insurance, which obviously names them as the beneficiary. This type of policy only covers the amount currently owed, not the original value of the mortgage. Term life insurance can be purchased to cover the amount of the mortgage. A term life policy however, never decreases in value. It also offers the added bonus of the policy holder naming the beneficiary, which allows for more financial freedom. Term life insurance can also be significantly cheaper, saving the homeowner money. Before committing to the bank's mortgage insurance, consult with your insurance broker about your options.
September 22, 2007 | Unregistered CommenterCarin
Snx for you job!
It has very much helped me!
March 20, 2008 | Unregistered CommenterACEXOLIARRELO
I am a first time home buyer, and I am very meticulous in terms of my finances. Saying this however, I am very confused how to preplan my fixed expenses. I can figure out my mortgage amount by using all the tools available on the web such as ING...etc, but I do not know how to calculate my property tax, and other fixed expenses....can someone assist?
April 16, 2008 | Unregistered CommenterNawaaz

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