First Time Home Buyers' In Regina

    First Time Home Buyers' In Regina

    First time home buyers in Regina have a lot to look forward to when buying a new home in Regina. There are a number of incentives for first time home buyers in Regina and more to come in September of 2019. The Government of Canada and Saskatchewan have a number of programs offer for Regina first time home buyers including:

    • The First Time Home Buyers’ tax credit (HBTC)

    • Home Buyers’ Plan (HBP)

    • First-Time Homebuyers' Saskatchewan Tax Credit (HSTC)

    • GST/HST New Housing Rebate

    • And starting in September a new incentive that we are referring to as the First Time Home Buyers Mortgage Incentive (HBMI)

    There is never been a better time as a first-time home buyer to buy a new custom built home in Regina.

    First-Time Home Buyers' Tax Credit (HBTC)

    The HBTC is a non-refundable tax credit of $5,000 offer to first time home buyers that they get when they file their tax return in the following year. What that means for first time home buyers’ in Regina is approximately another $750 in their pocket. The HBTC was effective for homes bought in Regina after January 27, 2009.

    Home Buyers’ Plan (HBP)

    Under the HBP, first time home buyers’ in Regina can withdraw up to $25,000 from their RRSP towards the purchase of a qualifying property. A couple can withdraw up to $50,000 from their RRSP’s with no penalties. The withdrawal needs to be repaid to your RRSP over a maximum of 15 years, although you can repay it prior to that at any time.The great news is that in the federal budget it was announced that the maximum withdrawal of $25,000 will be increased to $35,000 in September of 2019, allowing for a couple to withdraw up to 70,000.

    M2 Homes Regina

    M2 Homes Regina

    First Time Homebuyers’ Saskatchewan Tax Credit (HSTC)

    In Saskatchewan, Regina first-time home buyers are eligible for a non-refundable income tax credit of $10,000. This provides eligible taxpayers in Regina with an additional $1,075 in their pocket.

    GST/HST New Housing Rebate

    You may be eligible for a rebate on the tax-related on a portion of the GST you paid as part of the purchase of the construction of a new home in Regina. There are a number of housing rebates you can claim and the value of it is based on the provincial part of the GST. The rebate is on newly constructed homes in Regina that have a market value of under $450,000 upon completion.

    First Time Home Buyers Mortgage Incentive (HBMI)

    In March the federal government announced HBMI for first-time home buyers in Regina. For the first-time home buyers’ in Regina effective September 2019, of insured mortgages, the Government will provide an incentive of up to 10 percent of the house price on newly built homes or 5% on existing homes, lowering the amount of a homebuyers’ mortgage by that amount. Based on the eligibility requirements, the home price would need to be under $480,000 to qualify. Homeowners will have to repay the incentive however, the Government did not outline exactly how it will be repaid.While there is an obvious benefit to first time home buyers’ such as a reduction of the ongoing monthly mortgage payment of up to 10%, the benefit that is not so obvious is that it will lower the bar for the federal stress test making it easier for first time home buyers’ in Regina to qualify.