Latest news with #firstTimeHomebuyer
UAE Moments
03-07-2025
- Business
- UAE Moments
First-Time Homebuyers in Dubai Get New Property Incentives
If you've been waiting for the right time to buy your first home in Dubai, this might be it. Dubai just dropped a brand-new first-time homebuyer program packed with perks—think exclusive property deals, easier mortgage options, and early access to new real estate launches. The initiative is a team effort between the Dubai Land Department (DLD), the Department of Economy and Tourism, over 13 top developers, and 5 major banks. It's all part of Dubai's big goal to make the city a better place to live and boost homeownership rates. What's in It for You? ✅ Priority access to new property launches ✅ Discounted prices on select units ✅ Flexible mortgage options from top banks ✅ Easy online registration via the DLD website or Dubai REST app ✅ Zero-interest registration fee payment plans The program is open to any UAE resident over 18 with a valid Emirates ID, who hasn't owned a property before. You can buy an apartment or villa worth up to AED 5 million, and there are no restrictions on renting or selling it later. Big Names Backing the Program Some of the developers involved include Emaar, Nakheel, DAMAC, Danube, and Azizi, while banks like Emirates NBD, CBD, and Emirates Islamic are offering mortgage deals. Property platforms like Bayut, Property Finder, and Dubizzle are also in the mix. DLD says around 10,000 new investors enter Dubai's property market every month, and this new program hopes to bump those numbers even higher as Dubai works toward its massive Dhs1 trillion property market goal by 2033. Why It Matters
Globe and Mail
13-06-2025
- Business
- Globe and Mail
The week's best variable and fixed mortgage rates
The last couple weeks have been a bit deflating for anyone hoping for decreasing mortgage rates. Market expectations of Bank of Canada rate cuts have been waning, the central bank chose to hold rates last month and increasing bond yields mean slightly higher fixed rates could be on their way. Here's a bit of good news for any first-time homebuyers who are looking at new builds: A proposed rebate on GST for new home purchases could lower your mortgage costs. The Parliamentary Budget Officer – which provides independent financial analyses of federal government policy proposals – said the Liberals' plan to rebate some or all GST charges for first-time homebuyers purchasing new construction homes below $1.5 million will save an average of roughly $27,000 for eligible buyers. The impact will be limited, as the PBO thinks less than 5 per cent of all new construction sales will be from people who qualify for the program over the next six years. But if you are a first-time homebuyer in the market for a new build, you could save a maximum of $50,000 on a $1-million home as a result of the policy, which has only begun working its way through Parliament. A study by Desjardins found that the maximum rebate could save you roughly $240 in mortgage payments per month. Mortgage rates are sourced by For a comprehensive list of today's mortgage rates for each term/type, visit is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products. Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on June 12.
CBC
11-06-2025
- Business
- CBC
GST rebate on new homes would save typical first-time buyer $27K: Budget officer
Social Sharing The parliamentary budget officer says an eligible first-time homebuyer would save an average of $26,832 in sales tax on the price of a newly built home under Ottawa's latest housing proposal. In an analysis released Wednesday, the federal government's fiscal watchdog predicts that 71,711 new builds would qualify for GST relief over the lifetime of the program. The proposal would see the federal portion of the sales tax eliminated on a new home worth up to $1 million if it's bought by a qualifying first-time homebuyer. The GST rebate would be phased down as the price of the home approaches $1.5 million. Homes bought from May 27 through to 2031 can qualify for the rebate, as long as construction starts before 2031 and finishes by 2036. Canadians who have owned a home already are not eligible for the GST relief — with some exceptions. Neither are investors. The PBO forecasts the program will cost $1.9 billion over six years, while the federal government has pegged the "tax savings" for Canadians at $3.9 billion over five years. The PBO's latest estimate is about $100 million lower than the figure it cited during the spring federal election, when the GST break was proposed. It attributes that gap to a later implementation date and a different definition used for first-time homebuyers. A Desjardins Economics analysis of the proposal released Monday offered one explanation for the discrepancy between the PBO's cost estimate and the government's figure: Ottawa might think its program will be more popular than the PBO does. A higher cost estimate suggests more first-time homebuyers purchasing qualifying new builds, in other words. Economic impact of tax cut not part of analysis The GST rebate, which is not yet law, was included in the Liberals' spring election platform as a way to help Canadians break into the housing market. A home priced at $1 million would receive the maximum rebate of $50,000. The Desjardins report by economist Kari Norman said that if the program proves popular with first-time buyers, it could spur additional housing construction to meet higher demand. The PBO said it does not include possible behavioural responses to the program in its analysis. Norman noted in her report that it's also possible increased demand from homebuyers will push up home prices in the near term. She estimated that 85 per cent of new homes built in Canada over the program timeframe will be eligible for the full GST break of up to $50,000. In cases where the GST portion of a new home sale is rolled into the mortgage principal, the typical owner could expect to save $240 per month on mortgage payments, she said. The savings are more direct when a developer charges the GST upfront. The measure is packaged in legislation that also includes the Liberals' promised income tax cut, which is set to take effect July 1 after it was adopted through a ways and means motion last week.
National Post
11-06-2025
- Business
- National Post
Ottawa's GST rebate on new homes would save typical first-time buyer $27K: PBO
The parliamentary budget officer says an eligible first-time homebuyer would save an average of $26,832 in sales tax on the price of a newly built home under Ottawa's latest housing proposal. Article content In a new analysis released Wednesday, the federal government's fiscal watchdog predicts that 71,711 new builds would qualify for GST relief over the lifetime of the program. Article content Article content Article content The proposal would see the federal portion of the sales tax eliminated on a new home worth up to $1 million if it's bought by a qualifying first-time homebuyer. Article content Article content The PBO forecasts the program will cost $1.9 billion over six years, while the federal government has pegged the 'tax savings' for Canadians at $3.9 billion over five years. Article content The PBO's latest cost estimate is about $100 million lower than the figure it cited during the spring federal election, when the GST break was proposed. It attributes that gap to a later implementation date and a different definition used for first-time homebuyers. Article content Article content A Desjardins Economics analysis of the proposal released Monday offered one explanation for the discrepancy between the PBO's cost estimate and the government's figure: Ottawa might think its program will be more popular than the PBO does. Article content Article content A higher cost estimate suggests more first-time homebuyers purchasing qualifying new builds, in other words. Article content The GST rebate, which is not yet law, was included in the Liberals' spring election platform as a way to help Canadians break into the housing market. Article content A home priced at $1 million would receive the maximum rebate of $50,000. Homes priced below that amount would still get the full rebate – but since the sales tax is a smaller share of the final cost, the rebate would be lower as well. Article content The rebate also would be lower than $50,000 for homes sold above $1 million because the rebate gradually ramps down until it zeroes out at a purchase price of $1.5 million.
Globe and Mail
02-06-2025
- Business
- Globe and Mail
With a new GST rebate coming, here's a refresher on other tax breaks for first-time homebuyers
The federal government is moving ahead with a new GST rebate for first-time homebuyers, which may complement existing programs aimed at making housing more affordable. Advisors who help clients, or their clients' children, navigate the purchase of a first home can broaden and deepen their relationship with both the client and family. 'It ends up putting you in situations in which you're having more holistic conversations with a client,' says Jason Heath, a managing partner at Objective Financial Partners Inc. in Markham, Ont. While some tax programs for first-time homebuyers are well known, others are sometimes overlooked and missed, Mr. Heath says. In general, to qualify for these federal tax programs, a first-time homebuyer is someone who has not lived in a home that they or their spouse or common-law partner owns either in the current year or any of the previous four years. Here are the key programs and credits that already exist, in addition to the proposed new first-time homebuyers' GST cut. The FHSA, introduced in 2023, allows a first-time homebuyer to save up to a lifetime limit of $40,000 toward a home purchase. Annual contributions of $8,000 (plus up to a maximum of $8,000 of carry-forward contribution room) to the FHSA are tax-deductible, while withdrawals from the account to purchase a qualifying home, including any growth, are tax-free. Ideally, a first-time homebuyer would open and begin contributing to an FHSA at least a few years before buying a home, Mr. Heath says, because FHSA contribution room begins to accumulate only after someone opens an account. However, a first-time homebuyer can still open an FHSA in the year they buy a home and contribute $8,000 before making a withdrawal. That's because there's no minimum number of days that contributions must be held in an FHSA before being used to make a qualifying withdrawal. What is a qualifying withdrawal? An FHSA withdrawal counts as a qualifying withdrawal if the account holder has a written agreement to buy or build a home by Oct. 1 of the following year, or has bought a home within 30 days before making the withdrawal. Also, the FHSA holder must not have lived in a home they owned in the year of withdrawal or any of the previous four years. Whether the FHSA holder lives in a home their spouse or partner owns isn't a determining factor when making a qualifying withdrawal. The HBP allows a first-time homebuyer to borrow from their RRSP to buy a home without being taxed on the amount. Last year, the federal government increased the amount that can be borrowed to $60,000 from $35,000. 'The old limits didn't allow you to access very much RRSP money,' Mr. Heath says, so the increased amount might allow for a bigger down payment. The borrowed amount generally must be paid back in instalments over 15 years. If the annual minimum repayment isn't made, that amount becomes taxable. Under a temporary change made last year, for withdrawals between Jan. 1, 2022 and Dec. 31, 2025, instalment payments don't have to begin until five years following the year of withdrawal, up from two years under the regular HBP rules. Unlike the FHSA, contributions to an RRSP must remain in the plan for at least 90 days before they can be withdrawn for purposes of the HBP. The Income Tax Act allows first-time home buyers to access both the FHSA and the HBP to purchase the same home. And spouses and partners can each use their own FHSAs and access the HBP to buy the same house. The HBA allows a first-time homebuyer to claim a non-refundable tax credit of $1,500 (which is calculated as 15 per cent of the $10,000 HBA). While the HBA is meant to help first-time homebuyers offset costs associated with buying a new home, those claiming the amount don't have to track expenses. If both spouses qualify as first-time homebuyers, the amount can be split between spouses but the total credit remains $1,500. (The Liberals have proposed a cut to the lowest income tax bracket from 15 per cent to 14 per cent, effective July 1, which would affect the value of the credit.) Mr. Heath says eligible homebuyers sometimes miss claiming the HBA if their tax software doesn't prompt them or if they don't inform their tax preparer that they've bought their first home. The credit is claimed in the year the home is acquired. Provinces and cities may offer their own tax breaks or credits for first-time homebuyers. For example, Ontario provides first-time homebuyers with a land transfer tax rebate, as does the city of Toronto.
