First Time Buyers in Mississauga
First time buyers: Prosperity & Property in Mississauga
It is a well known fact that Canada is among the prosperous countries in the world. The government plays a vital role in offering support to new immigrants and upcoming businesses to help them settle down. There are several special incentives, funding schemes, tax relief programs and pension support to make sure residents and citizens enjoy a comfortable life.
Neighbourhoods are self-contained with schools, shops, restaurants, medical facilities and scenic spots in the vicinity. What’s more, development is centred on not just present comforts but also future growth.
The government offers several incentives to first time buyers. The Home Buyer’s Plan (HBP) and the First-Time Home Buyer’s Credit (HBTC) are designed to help newcomers invest in their first homes. First time buyers with a good credit history and a job are allowed to buy with a down payment of only 5%. There is a choice of housing from condos, townhouses, detached homes, semi-detached homes, single homes for immigrants from diverse backgrounds.
However, new immigrants often face a tug-of-war situation on certain home investment decisions.
Should they rent or buy their first home? Should they settle for a condo or a house? Should they skip a smaller apartment and jump straight into a bigger home? The government has good incentives for newcomers and first time buyers.
When you invest, you build equity even as you gain from price appreciation. There is a plethora of housing choices available. To get the best guidance, you should talk with a locally experienced real estate broker. Team Amit Kalia has helped many first time buyers not just with buying, but buying the right type of property, in the right neighbourhood.
First time buyers especially need good guidance at every step
Check for testimonials online, research thoroughly and rely less on part-time salespeople or inexperienced friends. A full time professional team will be well versed with the dynamics of property investment in Mississauga and area and help you understand the market conditions. Some over ambitious newcomers or first time buyers tend to skip renting or investing in a small apartment and jump straight into a bigger home. That may not always serve well. Even if it is not on top of your agenda, you can slowly buy what is suitable in your 5% down payment budget and build equity. Later you can always upgrade to a bigger, more spacious home.
Before you take a decision on your first home investment, it pays to shortlist some important questions for yourself:
- How much can you afford?
- As a buyer will you pay real estate commission?
- What is the minimum down payment for a newcomer?
- Before buying your property how do you locate the best schools?
- What are the government incentives for first time buyers in Ontario?
- What is RRSP Home Buyer’s Plan (HBP)?
- Is there any HST home buying rebate?
- Do first time buyers pay land transfer tax?
- What is first time buyer tax credit?
- As an investor do you qualify for first time buyer rebates?
We feel that affordability depends most importantly on your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.
The “Welcome to Canada” program for permanent residents and newcomers allows you to purchase a home with 35% down payment. The down payment requirement may be reduced to a slow as 5%, if you find permanent employment in Canada.
There are several incentives and schemes for first time buyers in Ontario. Below are some first time home buyer incentives/ rebates: RRSP Home buyers plan, Ontario land transfer tax rebate of up to $2,000, HST rebate for new home buyers, First time buyer tax credit and My Special Home Ownership Incentive.
Resale homes are exempted from HST in Ontario. HST is payable on builder new homes and condos.