Level Up Mortgages

Blog Posts

 

First-Time Home Buyer Programs in Newfoundland

In Newfoundland and Labrador, several programs have been developed to assist first-time homebuyers in achieving homeownership. These initiatives, offered at both federal and provincial levels, aim to make purchasing a home more accessible and affordable for residents.

Federal Programs:

  1. First-Time Home Buyer Incentive (FTHBI):

    • Description: The FTHBI is a shared-equity mortgage program where the Government of Canada offers 5% of the purchase price for existing homes and up to 10% for newly constructed homes. This contribution reduces the amount of the mortgage, thereby lowering monthly payments.

    • Beneficiaries: First-time homebuyers with a household income of $120,000 or less. The program is designed to make homeownership more affordable by reducing the financial burden of mortgage payments.

    • Source:
       Wikipedia

  2. 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 use toward the purchase of a home. The withdrawn amount must be repaid within 15 years.

    • Beneficiaries: Individuals who have not owned a home in the previous four years and have sufficient funds in their RRSPs. This program provides access to funds that can be used for a down payment, reducing the need for external financing.

    • Source:
       Wikipedia

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

    • Description: The HBTC offers a non-refundable tax credit of $5,000, which translates to a $750 reduction in federal taxes for eligible first-time homebuyers.

    • Beneficiaries: First-time homebuyers who have purchased a qualifying home. This credit helps offset some of the costs associated with purchasing a home.

    • Source:
       Wikipedia

Provincial Programs:

  1. First-Time Homebuyers Program (FHP):

    • Description: The FHP provides eligible households with a grant covering 50% of legal closing costs, up to a maximum of $1,500, and a repayable loan of up to 5% of the purchase price of a new or existing home. The maximum purchase price varies by region: $350,000 in St. John's (Census Metropolitan Area) and Labrador; $300,000 in regional centres; and $250,000 in rural areas.

    • Beneficiaries: First-time homebuyers with a total household income of less than $85,000 for full loan eligibility, with partial assistance available for incomes up to $95,000. This program assists those who may struggle with the upfront costs of purchasing a home.

    • Source:
       NLHC

  2. Secondary and Basement Suite Incentive Program (SBSI):

    • Description: The SBSI aims to increase affordable housing options by providing funding to homeowners to create new, self-contained secondary or basement suites within their homes. These suites are to be rented at below-market rates.

    • Beneficiaries: Homeowners interested in developing rental units to provide affordable housing options, thereby increasing the availability of affordable rentals in the province.

    • Source:
       NLHC

These programs have been developed in response to the growing need for affordable housing solutions in Newfoundland and Labrador. By offering financial assistance and incentives, both federal and provincial governments aim to make homeownership more attainable for first-time buyers, thereby fostering economic growth and stability within the province.

BOTTOM LINE

By equipping yourself with a thorough understanding of Newfoundland’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 Newfoundland.

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

See Our Google Reviews in BC & Ontario: bit.ly/GoogleReviewLUM ⭐️⭐️⭐️⭐️⭐️

Paul Davidescu