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What are the best subsidy programs for first-time homebuyers in Quebec?

4 March 2019,
 0

Buying a first home is something that many young people plan with excitement and even impatience.

Nevertheless, many of them struggle with preparing the down payment necessary as well as to have a positive cash flow in order to complete the project.

There are several subsidy programs in Quebec that are designed to assist first-time homebuyers that many remain unaware of. These programs can really help young people realize their dream of home ownership and improve the quality of their lives!

We are not just talking about hundreds of dollars but thousands of dollars that can be your lifeline.

Below we present the best subsidy programs for first-time homebuyers in Quebec as well as a simple and effective way to get professional help for your project, free of charge!

 

 

There are several subsidy programs for first-time homebuyers in Quebec that can help you realize your dream of home ownership.

 

HOMEBUYERS’ PLAN (RRSP)

If you are currently a first-time homebuyer planning to buy a house or condo and you have never heard of the RAP, this could change your life.

The government of Canada has decided to facilitate a home purchase by first-time buyers by making it easier for them to raise the down payment needed to buy their first property.

It set-up the Homebuyers’ Plan (HBP) which allows first-time homebuyers to withdraw up to $25,000 from their RRSP to buy a property without having to pay tax.

Well, if you think this won’t be of much help, allow us to explain further!

If you go ahead and place money into your RRSP for a few years until you finally accumulate $25,000, each year, you can deduct your RRSP from your taxable income and get a tax return.

If you have a tax rate of 35%, for example, you would have withdrawn $8,750 without doing anything other than putting money into your RRSP instead of your savings account.

If your spouse will do the same, then both of you will obtain $17,500 from the government. This will give you a big down payment and a gift of $17,500 from the Canadian government.

When you buy your house, you can withdraw the amount of your RRSP and use it without paying taxes which would otherwise be applied.

This is, by far, the most advantageous subsidy program for homebuyers who plan their home purchase well in advance.

However, you will need to pay your RRSP for a maximum period of 15 years. Nevertheless, this can be a big boost for younr homebuyers.

 

PROVINCIAL AND FEDERAL TAX CREDIT FOR THE PURCHASE OF A FIRST HOME

Both levels of the Canadian government also offer tax credits to help first-time homebuyers.

In fact, the Federal Government offers a tax credit of $5,000 which means a refund of $750 in your pocket.

This credit is intended to be all of the expenses for your home purchase that can be deducted from your taxable income. This amount can also help with the notary and other fees.

At the provincial level, it is also the same principle but the reimbursable amount is $626.

In total, you can benefit from the amount of $1,376 in your pocket which is not bad at all!

You can use this refund in whatever manner and surely, first-time homebuyers will be happy with this nice gift!

 

Your federal and provincial tax refunds is a nice gift from the government to assist first-time homebuyers.

 

PARTIAL TAX REFUND FOR THE PURCHASE OF A NEW HOME

First-time buyers who have their first home built or buy their first house may be eligible for a partial tax refund.

When you build your first home, you must pay the GST and QST which can amount to as much as 15% of the total contract price.

If you consider a $200,000 house, it can amount to no less than $30,000!

You can then recover a portion of this tax expense through various tax schemes.

We recommend that you speak with a real estate broker, a financial planner, or an account for more details.

This can make a huge difference in your budget!

 

Take advantage of tax refunds when you build or buy your first house.

 

RÉNOVERT PROGRAM/RÉNOCLIMAT/CHAUFFEZ VERT

There are 3 programs for homebuyers wishing to renovate their home in Quebec! First-time homebuyers can take advantage of them, too!

RÉNOVERT

The Renovert Program, while temporary, can provide substantial savings for first-time home buyers.

The  Rénovert program is a refundable tax credit on a temporary basis that provides up to 20% of eligible expenses in excess of $2,500 and up to $50,000.

In total, the maximum reimbursement is $10,000 which is substantial savings for first-time buyers and homeowners.

RÉNOCLIMAT

Improve the energy-efficiency of your house to take advantage of the Renoclimat subsidy.

The Rénoclimat program aims to grant a subsidy to homeowners who undertake renovations to make their homes more energy-efficient and improve the performance of their homes.

This covers improvements for insulation, heat retention, and so on.

The amount can run up to thousands of dollars.

CHAUFFEZ-VERT

Make your heating systems more energy-efficient to avail of this financial assistance for homeowners.

Chauffez-vert intends to provide financial assistance to homeowners who replace their water heaters and oil heating with more energy-efficient models powered by electricity.

The potential savings may vary and it is best to speak with an expert for more details.

 

REIMBURSEMENT OF WELCOME TAX FOR SELECTED BUYERS

The unpopular Welcome Tax is a big expense that we are forced to swallow.

It often involves thousands of dollars that we pay for with no clear reason. But did you know that some cities offer a refund of this tax for certain buyers?

In many cities in Quebec Province, a refund of the Welcome Tax is given to families with children.

Different grants of this type are given depending on the policies of municipalities. You should refer to a real estate broker to see if you qualify for this refund.

This simple step could save you thousands of dollars.

How can you find a good real estate broker in your area?

 

Families with children may be qualified for a refund of the Welcome Tax if they buy their first home.

 

Are you ready to buy your first home? Fill out our form to find an expert broker, free of charge!

Are you ready to buy your first home and save money with subsidy programs?

By filling out our 100% free and NO OBLIGATION form, you can compare real estate brokers and choose the one to help you FREE OF CHARGE and save money with your home purchase!

He will save you time, take care of all the details, and look for the best possible subsidies for your project!

With an expert by your side, it is impossible not to benefit from existing subsidy programs and put more money in your pocket.

Start looking for your dream home now and fill out our form to find a real estate broker in just a few minutes!

 

Save time and money by buying a first home with a good real estate broker.

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