In 2024, Canada has introduced specific requirements and incentives to support first-time home buyers, reflecting the government’s commitment to making homeownership more accessible for Canadians. The eligibility criteria for first-time home buyers include:
First-Time Homebuyer Status: An individual is considered a first-time homebuyer if they have never purchased a home before, have not occupied a home they or their spouse owned in the last four years, or have recently experienced the breakdown of a marriage or common-law partnership.
Newly Constructed Homes: The 2024 measures specifically target buyers of newly constructed homes to encourage new supply and avoid inducing excessive demand1.
30-Year Mortgages: A significant change is the introduction of up to 30-year mortgage amortizations for first-time buyers purchasing new builds. This allows for lower monthly payments, making it easier for younger Canadians to afford a home.
Tax Incentives: The Canadian government offers tax incentives such as the First Home Savings Account (FHSA), which allows tax-deductible contributions and tax-free withdrawals for buying or building a qualifying home. Additionally, the Home Buyers’ Plan (HBP) permits the withdrawal of up to $35,000 from registered retirement savings plans (RRSPs) for home purchases, provided it is repaid within the required timeframe.
Home Ownership Program: The Government of New Brunswick’s Home Ownership Program offers a repayable loan of up to $75,000 to eligible first-time home buyers. To qualify, applicants must have a household income of less than $40,000 and have been residents of New Brunswick for at least one year. For households with incomes less than $30,000, the loan is interest-free. The interest rate increases by 0.5% for every $1,000 of income above $30,000, up to the provincial borrowing rate. Visit Service New Brunswick for more details
These measures are designed to reduce the financial barriers that many Canadians face when entering the housing market even after the discontinuation of the First Time Home Buyer Incentive program. By fulfilling these requirements, first-time home buyers can take advantage of the various programs and incentives, paving the way for a more inclusive and equitable housing market in Canada.
*The information provided here is for educational purposes only. Consult professionals before making any financial or real estate decisions.
