It came, it went and honestly very few people had any idea what it was. I am talking about the “First Time Home Buyers Incentive” program. This complex program seemed doomed from the beginning, with the gain in equity shared by the Federal Government. The maximum a first time Buyer could spend to qualify for the program was $480,000. In Oshawa that price point is almost impossible to find, hence the ineffectiveness of the incentive. Ultimately, the program had budgeted for 100,000 homes to be purchased under the program with less than 16,000 actual purchases.

When we look at what is available as assistance to buying a property here are some programs that exist.

• First Time Home Savings Account. This program allows you to add $8,000 to an account yearly up to a maximum of $40,000 and must be used as a downpayment within 15 years. The investment is tax free and can be added to a RRSP contribution to a downpayment.
• Home Buyers Plan. This is a federal program allowing a first time Buyer to remove up to $35,000 from their RRSP to be used as a downpayment. ($70,000 if buying with another first time Buyer.) This amount must be paid back within 15 years.
• Ontario Land Transfer Tax Refund. This program rebates the land transfer tax on the first $368,000 of a purchase. This means that the first-time homebuyer will save $4,000 of the total tax payable on a home purchase in Ontario.

These seem to be the only available programs to help with first time Buyers. Here are a few other options that may help someone hoping to get into the market.

• Loan from Parents. I have had Buyers get help from parents by way of either a cash loan or even having parents place a mortgage on their personal property to help raise funds for a down payment.
• Buying with a Partner. A few years ago, I had helped a Buyer secure a home with her fiancée. She had bought a property previously with a friend and they lived in it for a few years. Ultimately, she allowed her partner to buy her share out of the home and she used that equity as a down payment for her own property.
• Purchase a home with an Apartment. When a homebuyer buys a home with a legal apartment, the lender will take into consideration ½ of the rent and add this to the income of the Buyer. This allows the Buyer to increase their income to qualify for a larger mortgage.
• Consider Purchasing a Rental Property with a Partner. Over the years I have had Buyers buy a rental property with a partner and a planning to hold the property for a period of years before selling. This way only 50% of the down payment is necessary and with the combined income required, this helps with qualifying. Once the property is sold, the equity can be used as a down payment for a personal residence.

The market is challenging to break into for a first time Buyer, however there are ways to help get your foot in the door and with prices escalating doing whatever it takes to get into the market is critical.

If you are considering the purchase a property, or have a home you are interested in selling, I can be reached at lindsay@buyselllove.ca or 905-743-56555.

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