First Time Home Buyers
Are you looking for an entry level home in Calgary?
It's a great time to get into home ownership with a recent price correction in housing prices and interests rate under 2% paired with qualifying for a mortgage the easiest it has been since the federal government set it's new rules a few years ago. With being a home owner, you are actually able to build equity as opposed to handing over money each month to a landlord. Building equity happens when the principle amount you owe on your house keeps decreasing while your home's market value stabilizes or increases. With this equity, you have more flexibility going forward with your next purchase of property and you can always tap into your equity down the road once your loan to value ratio decreases.
For first time home buyers, there are also programs set up by the Government of Canada that make the dream of that first home purchases a possible reality for hundreds of thousands of Canadians each year.
First Time Home Buyer Incentive
With this federal program, you can receive up to 5% of the purchase price on a resale home and up to 10% on the purchase of a newly built home. The money is lent to you interest-free and you'll be required to repay the government when you sell your home (after you have built up some equity). If you don't sell your home within 25 years, then you'll have to repay at that point. Contact Source Mortgage to see if you qualify for this program!
RSP Home Buyer's Plan
This is a program that allows you to borrow money from your RSP to finance your downpayment for your first home. You can pull out $35,000 maximum or $70,000 if purchasing as a couple and the withdraw is considered tax free. You must repay a portion annually and within 15 years it must be fully repaid. Cal Source Mortgage to see how this program can work in your favour and help you get that money for your downpayment!
Metis Capital Housing Corporation
This is a program for Metis Nation of Alberta members who have a family maximum of $150,000 gross income. Members must not own any other home currently or within the past three years. Financial assistance is available to those looking to make a home purchase which will become the primary residence of the applicant. Up to 5% of the downpayment is available up to a maximum of $20,000. If approved, applicants must live in the residence for 5 years or else face a penalty. This is a great incentive for first time home buyers! Click the logo below for a link for more details and the application.