This is a question we get all the time so thought it would be a good idea to explain. The term “First Time Home Buyer” actually does not exist anymore in purchasing a property. It used to be a few years back that in order to go as low as 5% down payment on a home you could not have owned a property for the past 5 years and the property you are buying had to be your principal residence. That is no longer the case.

The new rules are only that you must be going to live in the property as your home. You can own as many other properties as you like however as long as you are going to live in the property you are getting the mortgage on you can go as low as 5% down payment. There may be some exceptions to that due to the type of property you are buying so the best advice a can give is check with us at Unbeatable Mortgages ahead of time and we can advise. It is always best to work with an experienced and qualified Mortgage Broker, to get the best advise for your home purchase.

There is the First Time Home Buyers RRSP Plan.  Where the federal government allows you to use up to $25,000 of your RRSP savings ($50,000 for a couple) to help finance your down payment on a home. To qualify, the RRSP funds you’re using must be on deposit for at least 90 days. You must also provide a signed agreement to buy or build a qualifying home.  You then have 15 years to pay this back with out penalty.  For more information on this plan refer to the Canada Revenue website at:

It is also important when tax time comes to see if there was a first time home buyers tax credit (HBTC) offered for the year in which you bought.  In the last couple years this has been offered.  The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2014) by $5,000. For 2014, the credit will be $750. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.

So where to start?  Call one of our mortgage planner’s and have them assist you with making sure you get the best advise when it comes to purchasing a new home.