Canadian Government has introduced several policies to make home buying affordable in Canada. You can take help of a home mortgage calculator to assess your home affordability and then choose the right financing option to own a property in Canada.
Home financing options introduced in Canada:
Canadian Mortgage and Housing Corporation (CMHC), the national housing agency of Canada, has introduced certain financing options, which are given below.
• Timely payment on mortgage based securities – CMHC guarantees timely payment on mortgage based securities that help ensure a steady supply of low cost funds for the residential mortgages.
• Mortgage Loan Insurance – CMHC provides Mortgage Loan Insurance so that the lenders can offer mortgage loans at the lowest possible rates. Thus, the borrowers can own a property just by making 5% down payment on a home. It also helps the homeowners to refinance and renovate their homes.
Moreover, Mortgage Loan Insurance is available for all types of housing that includes retirement homes, nursing homes and rental homes, too.
Types of property ownership in Canada:
There are 2 types of property ownership available in Canada, namely, condominium ownership and freehold ownership. Usually, townhouses and apartments are sold as condominiums, where you get equal share of the communal areas. In freehold ownership, you own the home and the land on which the house is built.
Ownership incentives in Canada:
Canada’s Economic Action Plan has introduced several incentives for the first-time home buyers. These incentives are discussed below.
• First-Time Home Buyers’ Tax Credit – First-Time Home Buyers’ (FTHB) Tax Credit has been introduced that provides a $5000 non-refundable income tax credit on a qualifying home that has been purchased after 27th January, 2009.
• Expansion of Home Buyers’ Plan – Canadian Government has also increased the withdrawal limit of the Home Buyers’ Plan (HBP) from $20,000 to $25,000 per person. This is applicable for withdrawals made after 27th January, 2009.
You can take help of a home mortgage calculator to find out which financing options will be suitable for you in the long run.