Things you need to know as a first-time homebuyer

Written by Henry Young. Posted in Real Estate

 

Becoming a property owner is certainly an exciting prospective, and buying your first home will give you an incredible sense of satisfaction. You will no longer have to deal with landlords, you can decorate your interior exactly as you please, and you will finally live in a place you can call home. However, making this investment is certainly not easy, considering all of the costs involved. If you have recently made this type of purchase, or are planning to in the near future, there are some things you should know. The government supports buyers, and stands at their disposal with amazing programs, such as a new housing rebate. The following information can help you understand a bit more on how to gain some financial advantage after buying a property:

Rebate program – benefits and obligations

The main advantage and the reason why homebuyers file for a rebate is the amount of money the government promises to offer. After making such a large investment (probably the biggest of your life), your financial situation might have to suffer. The money received through a HST rebate will certainly be very useful, and if you have the right to receive it, why not take advantage of the opportunity? However, you should be well aware of your obligations as well, because there are various requirements you need to meet in order to be considered eligible for this program. The most important aspect is the deadline. You can file for a rebate only during a two year period, after two years have surpassed, your application will no longer be viable for this program. This is why you should take care of the process quickly after making the purchase. Also, there is a maximum and minimum purchase amount buyers need to stick to, so make sure you have researched this aspect carefully. Age and marital status can also play a role in your application.

Applying for a rebate the easy way

Although the chance of obtaining a rebate is high if you meet all demands, filling in the applications is not a task that should be taken lightly. There are various documents and paperwork that need to be gathered, and one single small mistake can prevent you from obtaining the amount of money you are entitled to. If you do not want to take any risks, and want the process to be as easy and inconvenience-free, you should know there are specialists out there who can provide you with professional support. Hiring a rebate specialist to take care of your application and to ensure you have all paperwork in order will simplify the entire process. With the help received from a professional, you will not have to worry that you might have forgotten about an important aspect, or you haven’t filled in the application properly – you will be increasing your odds of obtaining the highest rebate amount possible.

Properties used for business purposes

Many buyers are improperly informed, and they believe it is possible to receive a rebate even when using a property for business purposes. However, the government will not offer you a return if you are planning to use the house for anything other than a residence. If you read the main requirements, you will see that in order to become eligible for this program, the property needs to be your primarily place of residence. If you desire to make a profit with your newly bought house, one possibility would be to use your home as a bed and breakfast inn, while still living there yourself. This is one of the only opportunities of turning the property into a business while still being able to receive a HST return.

Homebuyer’s plan

Besides the HST rebate (which is the most popular program offered by the government), you can opt for a homebuyer’s plan as well, if you have not yet purchased a house. This plan gives buyers, who have not owned a house over the last 4 years, the opportunity to obtain a credit with the Government of Canada’s Economic Action Plan. So if you have been looking for a bit of financial support, this can come as a great plus.

Buying a property for the first time is certainly a large investment to make, but the great thing is that the government supports you in becoming a homeowner, and provides you with various advantages. With the new housing rebate you have the possibility of accessing, you can receive a return up to even 30,000 dollars. If you have spent all of your life savings on this purchase, then receiving such a large amount of money will certainly come as a great advantage. However, you need to be aware of all the requirements you will need to meet in order for your rebate application to be taken into consideration. Now that you understand everything that a first-time homebuyer should know, you can enjoy the benefits of having your own property.