Buying your first home in Calgary is an exciting milestone, but it can be overwhelming when you consider the numerous costs involved. Luckily, both the federal and Alberta governments offer a range of incentives to help first-time homebuyers make their dreams of homeownership a reality. Here’s a look at the current programs available that can support you on your journey to owning a home in Calgary.
Federal Programs and Incentives
1. First-Time Home Buyer Incentive (FTHBI)
The federal government’s FTHBI is designed to make mortgage payments more manageable by offering a shared equity loan. Eligible buyers can receive 5% to 10% of the home’s purchase price (depending on whether it’s new or existing). This reduces your mortgage amount and lowers monthly payments. The loan is repayable upon sale of the home or after 25 years.
2. Home Buyers’ Plan (HBP)
The HBP lets first-time buyers withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to put toward buying a home. If both buyers qualify, they can withdraw up to $70,000 combined. The amount must be repaid over 15 years, which makes it a helpful way to access additional funds without immediate tax implications.
3. First-Time Home Buyer Tax Credit
This non-refundable tax credit can provide up to $5,000 in relief when filing your income taxes, helping to offset some of the expenses associated with purchasing a home.
4. First Home Savings Account (FHSA)
The FHSA is a new incentive, and it allows first-time buyers to save up to $8,000 annually, with a lifetime limit of $40,000, tax-free. Contributions are tax-deductible, and withdrawals for a first home are tax-free; it’s a powerful tool to boost your savings for your first property.
Alberta-Specific Incentives and Support
1. Calgary Land Transfer Tax Rebate
First-time homebuyers in Calgary may qualify for a rebate on the provincial land transfer tax. Currently, eligible buyers can receive up to $4,000 in rebates, which can significantly reduce the upfront costs of purchasing a home in Calgary’s competitive market.
2. Local Municipal Support
While Alberta doesn’t have a broad provincial program specifically for first-time buyers beyond the land transfer rebate, local competitions, grants, or property tax programs occasionally provide additional assistance for new homeowners. It’s worth checking with Calgary’s municipal resources or housing agencies for current offerings.
Tips for Calgary First-Time Buyers
• Research eligibility criteria thoroughly for federal and provincial programs, as they often have income limits, property value caps, or other criteria.
• Combine incentives effectively; for example, pairing the FHSA with federal programs can maximize your savings.
• Partner with a knowledgeable real estate agent or financial advisor who can help you stay updated on current programs and guide you through the application process.
Calgary’s first-time homebuyers have access to a variety of government-backed programs designed to reduce costs and support their homeownership goals. As you can see, there are multiple pathways to make your first home more affordable. Exploring these options early, with the help of a trusted real estate professional, can put you on the path to owning a home in Calgary’s vibrant community.
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