Besides saving for years and years and living on ramen noodles, there are ways to purchase your first home.
1. The Home buyers plan
A 15 per cent income tax credit towards closing costs for eligible applicants. The credit applies to a maximum of $5,000 in closing costs which would result in a credit of $750.
2. 5% Down Payment plan
Although, it is advisable to have a bigger down-payment as you have to pay a premium to insure your property.
3. HST Rebate
Available when you purchase a renovated home from a builder, a new mobile home, shares in a co-op, or substantial renovations to your home, even from fire. May get up to 36 percent rebate of the federal portion of the HST paid to a maximum of $6,300 on a home costing less than $350,000. The new home buyer can also apply for a rebate of 75% of the provincial portion of HST to a maximum of $24,000.00.
4. Rebate on Provincial and Municipal Land Transfer Taxes
Up to $2,000 for Ontario and up to $3, 725 for the City of Toronto for first time buyers who have never owned a house anywhere in the world nor been with a spouse who has.
5. Bank of Mom and Dad
In addition to the purchase price, land transfer taxes, there is also legal fees, title insurance, moving and new services costs, insurance for your property and adjustments made prior to closing for things such as property taxes, any shortfalls from the loan, registration of the transfer and mortgage, common expenses (for a condominium) and oil if you are purchasing a home. These additional costs can be at least another $5,000.
Make sure you ask about all available ways to finance your property, what programs you may be eligible for and all costs prior to closing. Try to save as much money as possible so you can purchase your first place.