Being a first time home buyer in Canada, or elsewhere, should be one of the most exhilarating experiences of your lifetime. That said, it will also take quite a bit of planning and critical thinking before packing up and moving into your new home.
If you’ve been searching for a list of the benefits of being a first time home buyer in Canada, your search ends here. Continue reading for a run-down of all the best benefits that come with buying a home for the first time in Canada.
Buying Your First Home in Canada
Purchasing your first home is exciting and should be as painless as possible. When you buy a home, you are making one of the most significant investments of your entire lifetime. Before you decide what type of house you are going to purchase, make sure you sit down and determine what you can feasibly afford and exactly where in Canada you want to buy your first home.
There are so many versatile options for buying your first home in Canada; therefore it is particularly wise to have a real estate agent or mortgage broker to help you along the way. These professionals will aid and guide you through the entire process, taking most of the stress off your back, allowing you to enjoy in being a first time home buyer.
7 Benefits of Being a First Time Home Buyer in Canada
Many various benefits come with being a first time home buyer in Canada. That said, we’ve taken the liberty to round-up 7 of the top benefits of being a first time home buyer in Canada to better educate you about the versatile range of opportunities awaiting you and your family.
Here are the top 7 benefits of being a first time home buyer in Canada:
1. First Time Home Buyers Tax Credit
First time home buyers in Canada are many times eligible to receive the remarkable benefit of a first time home buyers tax credit. The tax credit was implemented by the government in 2009 and is designed to help first time home buyers recoup some of the cost(s) related to their purchase of a new home. The tax credit is intended to be used for things such as inspections, legal fees, and other items related to closing costs. This is an excellent benefit for first time home buyers in Canada.
2. It Is a Solid Long-Term Investment
Many do not think of purchasing a home as an investment – but that is precisely what it is – a long term investment of significant value. First time home buyers are putting their savings into a new home in hopes of not only a place to live but for a substantial return in the future as well. Homes hold their resale value quite well, and if you take the time to maintain, upgrade, and perform renovations as needed, you’ll more than likely increase your return. That said, It is important to invest wisely when searching for your new home.
3. The Canadian Government Supports Homeownership
Did you know that housing in Canada is taxed less than any other type of investment or other assets? A single-family home does not have to pay the same amount of taxes on the capital gain as other investments (stocks, bonds, etc.) and investment properties. The tax rate return on family homes is minimal or sometimes not taxed at all. The government’s favoritism to family-owned homes is most definitely a superb benefit for first time home buyers.
4. Building Equity
What is equity? Equity is, in short, the amount or piece of property that you own- the part that is paid for and belongs to you. Why is equity so significant? Equity helps you to build and grow into newer homes and eventually move past being a first-time homeowner unless of course you get lucky and your first home is yours forever home. I like to think of equity as a savings account that I cannot touch until I have sold my house.
5. Flexible Payments Options
Most first time home buyers can qualify for flexible payment options, and making payments to something you own is far better than making payments on something you are merely renting. Manageable payments are just that – it offers the flexibility to make monthly payments (paying more or paying less). There are also options through flexible payments in which the consumer can stop payments for some time, borrow money back if needed, or make extra payments over a year.
6. Sense of Community
When you invest in a home, you are also investing in the community that surrounds you, thus giving you stronger ties to the community than someone who is renting their home. Community is a group of people that are linked together for a common interest, and when others see that you are buying and not renting, they will view it has you (the first-time homebuyer) are committed to the surrounding community. A sense of community equals a sense of belonging.
Owning your own home provides you with much more privacy than renting from a landlord. When you rent a property, the landlord more than likely knows about all the happenings at the residents and is acutely aware of when you can and cannot make payments. Owning your own home gives the homeowner the ability and the flexibility to make decisions in the privacy of their own home. Even if you are not renting from a landlord but are living at home with your parents or living with others, investing in your first home will give you so much more privacy!
Will You Be a First Time Home Buyer in Canada?
Being a first time home buyer in Canada, as well as in most other countries, comes with an enormous amount of perks if you know where to look. We hope that our list has inspired you and informed you to the wealth of benefits that await for when you make the final decision to become a first time home buyer in Canada.
If you have questions about any of the benefits mentioned above, do not hesitate to reach out to our mortgage agents at Citadel Mortgage. They will be more than happy to answer your questions and aid you in any way possible.
Thanks for reading and good luck as a first time home buyer in Canada!
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Happy house hunting!