Purchasing a home is a significant investment for many, especially the middle-class sector. It’s not just an investment. Your emotions, future, and lifestyle also relate to it in some way or another. Therefore, it is necessary to consider how it will affect your finances, family, and livelihood whenever an advertisement like “homes for sale Regina SK” tempts you to invest.
To make a wise decision, consider these points when planning home ownership in Canada:
Before Anything Else, Make a Budget and Start Saving
From this moment, make a comprehensive budget plan to handle your expenses. Doing so will help you to get rid of unnecessary expenses. Eventually, you will save more money for the down payment of the home and other costs. If you endow a large down payment, your monthly mortgage installments will be lower in value and duration. Plus, you will receive better interest rates, which can save you a significant amount in the long run.
Take Advantage of HBTC
According to manulifebank.ca, homeowners in Canada can avail of HBTC (First Time Home Buyers Tax Credit) depending on certain factors. It applies to those who haven’t lived in a house they or their spouse owns in the last four years. With this plan, you can earn a claim of upto $5000. It helps Canadians to cope up with surprising new-home expenses like maintenance and property taxes.
Try To Improve Your Income
Purchasing a house is usually once in a lifetime investment for many. That’s why people prefer to buy a dream home when they make this decision. And when that happens, you require more money than you expected initially. So, it’s always better to increase your income before making the purchase. You may consider having part-time jobs or some investments to help you raise funds as per your needs. And if you get a house as per your initially prepared budget, you can use this extra money in your down payment.
If Applicable, Go For Registered Retirement Savings Plan (RRSP)
According to this policy, if you and your spouse have qualifying RRSP contributions, then either both or any one of you can have a tax-free withdrawal of your savings for purchasing your first home. As per HBP (Home Buyer’s Plan), first-time homeowners can withdraw up to $35,000 of their retirement savings tax-free to use that amount as a down payment. It is like borrowing money against your retirement savings.
Note: One has to pay back the borrowed amount in less than 15 years through the RRSP contributions. If one fails to do so, the amount then becomes taxable. You can read more information regarding this on the Home Buyers’ Plan page of the Canada Revenue Agency’s (CRA) website.
Get a Rebate on New Housing Tax by Paying GST.
If you pay GST (Goods and Services Tax) or Harmonized Sales Tax (HST) on a home, you are eligible for a new housing rebate on the tax. However, there are certain regulations for it. You need to consult a real estate agent in Regina or your area to know the exact guidelines in this regard.
So Are You Ready to Buy a Home?
Make sure you have adequate financial resources before enjoying the pride of homeownership in Canada. As per requirement, you must have the 5% of the down payment. But it would be wise if you save more than that.
Help Tip: If you currently have some other priorities (like starting a new business) that require money, you must wait to purchase your dream home. Remember, it’s easy to buy a home through a business’s profit, but it’s not easy to build a business even though you sell your house.
Now, if you have thought through, check out – Emerald park homes for sale and White City homes for sale!