Real estate agent Ottawa assists in strategizing first-time buyers entering the real estate market

Posted by Marina Karshuli on September 9th, 2022

The transition from a rental home to ownership of a new house for sale Ottawa is not easy. Especially, if you are in Canada and want your own home, you are up with different challenges. You have to brave rising interest rates and home prices, low housing inventory, and stricter lending rules. An average Canadian hoping to get into the real estate market may find it difficult to get going. To surmount these challenges, you may need professional assistance for a trusted real estate agent Ottawa.

However, it is not that, you can buy the home of your dream if you are living in Ottawa. There are various strategies you can adopt with the help of your real estate agents who can make your buying journey convenient. Let us explore a few strategies you need to understand before you put your best foot forward in the real estate market of Ottawa.

Learn about various Government programs

The real estate market is the cornerstone of the Canadian economy, so the government here has a vested interest in encouraging first-time home buyers. The more an average Canadian afford to buy a home, the more they help boost the economy. Various government programs specifically benefit first-time home buyers. Some of these government programs are:

First-Time Home Buyers Tax Incentive: Typically, first-time homebuyers can claim up to 00 amount with this tax credit. But, with the latest 2022 Federal Budget, the government doubled the credit to 000 which is a good encouragement on the government's part. This tax incentive is helpful when you want to meet various expenses such as moving expenses, closing costs, or any other unexpected fees that may incur when you are buying your first home.

Home Buyer’s Plan: In the federal government’s “Home Buyers’ Plan”, a new homeowner can draw up to 00 or 000 for a couple, tax-free from your Registered Retirement Savings Plan (RRSP) to finance the down payment of your home. However, there are a few conditions like the fund must be on deposit for at least 90 days. You also need to furnish a signed purchase agreement. The owner must repay the fund into his RRSP within 15 years to avoid being taxed on the withdrawals.

Other options to save for a down payment 

Withdrawal from a Tax-Free Savings Account (TFSA) for a down payment is yet another option. The 2022 Federal Budget has also announced a new tax-free saving account favorable for first-time home buyers. You can put up to 00 per year into your tax-free account. All interests or investment growth for this account is also tax-free. You need to pay the taxes if you repay the amount within 15 years.

Know about the concept of a 20% Down Payment

The Canadian Mortgage and Housing Corporation (CMHC) made a rule several years ago, that to qualify for a mortgage, a Canadian must have at least a 20% down payment. However, this is only a half-truth, especially for first-time homebuyers. If you are a first-time buyer, you need to pay less than 20% to buy a home. 20% is an ideal number, however, if your home price is 0,000 or less, you only need to have a 5% down payment. 

The rule is if you purchase a home between 0,000 to 9,999, you need 5% of the first 0,000 and then 10% of the remaining. If you purchase a home between ,000,000 to ,250,000, then you must pay a 20% down payment. For the amount over ,250,000, you would need to pay 40% to 50% down, depending on the lender.

Talk to the real estate experts 

The real estate market relies heavily on financial fluctuations and federal government legislature; therefore, it may become a bit overwhelming for a new homebuyer. You may need professional guidance to tread this path. Your Real estate agent Ottawa can be a helpful hand if you are planning to buy your new home in Ottawa. They can do the actual legwork for you. Real estate agents have the benefit of a huge network consisting of real estate-related professionals who can chip in whenever required. They are experts in swinging the wheel in your favor.

Bottomline 

So, if you are looking to buy a new house for sale Ottawa, it is time to have a well-planned strategy in place. You must hire a real estate agent Ottawa for assistance on every step. Marina Karshuli is a prestigious realtor in Ottawa assisting clients in buying a new home. For more information, contact the best Ottawa Realtor Marina Karshuli.
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