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Alberta’s Best Programs for First-Time Home Buyers

In recent years, both federal and provincial governments in Canada have introduced various programs to assist first-time homebuyers in Alberta. These initiatives aim to make homeownership more accessible by offering financial support and incentives. Below is an overview of these programs, detailing their purpose and the beneficiaries they are designed to assist.

1. Federal Programs

a. First-Time Home Buyers' Tax Credit (HBTC)

  • Description: The HBTC is a non-refundable tax credit that allows first-time homebuyers to claim up to $10,000 on their tax return for the purchase of a qualifying home. This translates to a tax rebate of up to $1,500, helping to offset some of the initial costs associated with purchasing a home.
    Government of Canada

  • Beneficiaries: This program benefits first-time homebuyers across Canada by reducing their tax liability in the year of purchase, thereby easing the financial burden of buying a home.

b. Home Buyers' Plan (HBP)

  • Description: The HBP allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. The withdrawn amount is not taxed if it is repaid within a 15-year period.
    CMHC

  • Beneficiaries: This program is advantageous for individuals who have been saving in their RRSPs and wish to utilize these funds for a down payment without immediate tax implications.

c. First Home Savings Account (FHSA)

  • Description: Introduced in 2023, the FHSA is a registered savings account that combines features of both RRSPs and Tax-Free Savings Accounts (TFSAs). Contributions are tax-deductible, and withdrawals for the purpose of purchasing a first home are tax-free. The annual contribution limit is $8,000, with a lifetime maximum of $40,000.
    Wikipedia

  • Beneficiaries: This account benefits first-time homebuyers by providing a tax-efficient way to save for a down payment, accelerating their path to homeownership.

2. Provincial Programs in Alberta

a. Attainable Homes Calgary

  • Description: This program assists first-time homebuyers in Calgary by offering move-in ready homes at below-market prices. Participants are required to contribute a minimum down payment of $2,000, and the program provides a shared equity mortgage to cover the remainder. When the property is sold, a portion of any appreciation in value is shared with the program.
    Wowa

  • Beneficiaries: This initiative is designed for individuals and families with moderate incomes who can afford homeownership but may struggle with the initial down payment.

b. First Place Program (Edmonton)

  • Description: The First Place Program in Edmonton offers first-time homebuyers a five-year deferral on land costs for select properties developed on surplus school sites. This deferral reduces the upfront cost of purchasing a home, making it more affordable.
    Wowa

  • Beneficiaries: This program benefits first-time buyers in Edmonton who meet specific income and net worth criteria, providing them with an opportunity to enter the housing market with reduced initial expenses.

3. Recent Developments

The introduction of the FHSA in 2023 represents a significant development in assisting first-time homebuyers across Canada, including Alberta. By combining the tax advantages of RRSPs and TFSAs, the FHSA offers a flexible and efficient savings vehicle for prospective homeowners. Additionally, provincial programs like Attainable Homes Calgary and the First Place Program in Edmonton continue to evolve, providing tailored solutions to meet the unique needs of Alberta residents.

These programs collectively aim to reduce the financial barriers to homeownership, reflecting a concerted effort by both federal and provincial governments to support first-time buyers in Alberta.

BOTTOM LINE

By equipping yourself with a thorough understanding of Alberta’s first-time home buyer programs and leveraging the resources and expertise offered by Level Up Mortgages, you can confidently navigate the home-buying process and secure the best financing options available. Understanding these benefits and exploring the right mortgage solutions will set you on the path to a successful home purchase in Alberta.

Level Up Mortgages is a mortgage broker team focused on helping the self employed, new immigrants, non-residents, and investors, access best rate and alternative lending in Canada. We have been nominated for best up and coming broker in Canada in 2021 and have been on CTV News and various publications because of our education-first approach to helping you always stay a step ahead of the process. Reach out to us for access to our first-time buyer course or a mortgage strategy session.

See What You Qualify For Or Contact Paul To Get Your Pre-Approval.

  • Paul Davidescu (www.levelupmortgages.com)

  • Level Up Mortgages

  • 604-809-3188

  • paul(at)levelupmortgages.com

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Paul Davidescu