The choice between renting or buying a property is not always obvious. Acquiring a new property is a complicated experience, especially if it’s the purchase of your first house. However, rest assured, you are not alone in this project! As for renting a house, this can seem like a more reassuring option since the owner is responsible for all the costs related to maintenance, taxes, and surprise repairs. But your monthly rent or “investment” will benefit your landlord rather than you…
There exists a whole range of tools that are very useful to help you make the right choice, but ultimately it also depends on your situation. According to the AMF (Autorité des marchés financiers), if you plan to live in a house for more than three years, it’s preferable to be the owner. However, if you envisage staying there for less than three years, you’re better off renting.
It’s important to remember that if you haven’t put aside savings for unpredicted expenses related to the home, it would be wiser to keep renting until your “nest egg” is more substantial. In the meantime, you can enjoy the freedom granted to you by your status as a renter…
Preparing to be a homeowner
The purchase of a house is certainly a sizeable investment, but it’s possible today to undertake this adventure with peace of mind, thanks in part to the knowledge gained throughout the buying process. To help you respond to every question or worry that arises during the process, here are the tools that will help you become a stress-free homeowner more easily.
The Canada Mortgage and Housing Corporation: a website to check out!
The CMHC didn’t stop at creating a website filled with useful tips and links; they’ve also developed a mobile app to help homebuyers improve their knowledge of the subject. You can download the app, which will, for example, help you determine your ability to pay and give you a ton of tips that will come in handy throughout the purchasing process. On the CMHC website you’ll also find lots of interesting articles about the housing market (data, analyses, etc.).
Programs and accessibility measures for homebuyers
For many, the purchase of a property is the project of a lifetime. However, the road to acquiring this asset is sometimes scattered with pitfalls and a high chance of discouregment; yet there is a vast number of programs that can make all the difference when the time comes to buy a property.
At this time when mortgages are advantageously low, and thanks to the various programs available, the stars are perfectly aligned so that everyone can purchase a property!
Here are a few of the programs:
First-Time Home Buyers’ Tax Credit (HBTC): a non-refundable personal income tax credit of $5,000 for a qualifying home purchased after January 27, 2009.
The Home Buyers’ Plan (HBP): a program that allows you to withdraw up to $25, 000/year from your registered retirement savings plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability.
GST/HST new housing rebate: among other things, a refund of a portion of the GST or HST that you paid on the buying price or the construction cost of your new home.