First-Time Home Buyers Incentives in New Brunswick
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New Brunswick remains one of the more affordable provinces in Canada, with average home prices around 2x lower than the national average. With federal and provincial programs available to help reduce the costs of homeownership, the province becomes even more affordable for first-time buyers. Whether you’re a current resident or looking to relocate, first-time buyers can access programs in the province ranging from down payment assistance to tax credits.
Key Takeaways
- New Brunswick residents of at least 1 year may qualify for provincial incentives as a first-time homebuyer.
- The Home Ownership Program provides financial assistance to low- and modest-income households to buy or build a first home.
- Federal programs like the Home Buyer’s Plan (HBP) and the Home Buyers’ Amount can help reduce costs for first-time buyers.
New Brunswick First-Time Home Buyer Incentives
Incentives in New Brunswick provide financial assistance to first-time buyers to help buy or build a first home. The Home Ownership Program provides financial assistance to low- and modest-income households to help them buy or build a modest first home.
Home Ownership Program
The Home Ownership Program assists families or individuals with a total household income below $40,000 with financial assistance to buy or build a first home. To be eligible, applicants must be first-time homeowners or be living in a substandard housing unit, be a resident of New Brunswick and living in the province for at least 1 year, have a good credit rating and meet all financial institution lending requirements to obtain a mortgage.
The program will provide a repayable loan for 40% of the purchase price if purchasing an existing unit. If building a home, the program will provide a repayable loan of up to 50% to a maximum of $75,000 of the total home cost. Loan terms require that the loan be repaid at 0% interest for households with incomes of less than $30,000. The interest rate will increase by 0.5% for each $1,000 of adjusted income above $30,000 until it equals the provincial borrowing rate.
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Federal First-Time Home Buyer Programs
In addition to the Home Ownership Program, several federal incentives are available to help first-time homebuyers purchase their first home.
Home Buyer’s Plan (HBP)
The RRSP Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 (up to a maximum of $120,000 combined with a spouse) to buy or build a qualifying home. The amount withdrawn remains tax-free as long as it is repaid into your Registered Retirement Savings Plan (RRSP) in equal installments within 15 years. There is a 2-year grace period after withdrawal where repayments are not required under the plan.
Home Buyers’ Amount
The home buyers’ amount provides a rebate of up to $1,500 on your income tax return when purchasing a qualifying home. First-time home buyers can claim up to $10,000 when filing taxes for a maximum return of $1,500 or split the amount with your spouse, common-law partner, or an eligible person jointly acquiring the home with you.
GST/HST New Housing Rebate
When purchasing a newly built or substantially renovated home, the GST/HST new housing rebate is available to reduce the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). The rebate amount differs depending on the province where the home is located and whether a rebate is available on the provincial portion of taxes as well as the federal portion of taxes.
Frequently Asked Questions (FAQ) on First-Time Home Buyers Incentives in New Brunswick
How much do first-time home buyers have to put down in New Brunswick?
The down payment you require depends on the purchase price of the home. First-time buyers in New Brunswick need a minimum of 5% for homes with a purchase price of $500,000 or less. For homes with a purchase price between $500,000 and $1,499,999, you require 5% on the first $500,000 and 10% on the remaining amount. For homes with a purchase price of $1.5 million or more, you require a 20% down payment.
Can any resident qualify as a first-time home buyer in New Brunswick?
To qualify as a first-time buyer in New Brunswick, the Home Ownership Program requires that you be a resident of the province for at least 1 year, among other qualification criteria. Some federal programs, like the GST/HST new housing rebate, do not require you to be a first-time buyer to qualify for the program. Other programs like the HBP and home buyers’ amount require that you meet the qualification criteria as a first-time home buyer.
Can I combine first-time home buyer incentives in New Brunswick?
As long as you meet the eligibility criteria outlined by each program, you can take advantage of all federal and provincial programs available in New Brunswick. However, always confirm specifics with each program or incentive when applying.
Final Thoughts
New Brunswick offers a range of incentives to make homeownership more accessible for first-time buyers. From provincial programs like the Home Ownership Program to federal initiatives such as the Home Buyer’s Plan and the Home Buyers’ Amount, those looking to purchase their first home in New Brunswick have several avenues for making homeownership more affordable.
If you’re considering buying your first home in New Brunswick, contact nesto mortgage experts for personalized guidance and expert advice on navigating the mortgage process.
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