![\"How](\"https:\/\/hypotheques.ca\/wp-content\/uploads\/2023\/03\/62e150224fafecebc5e7805b_comment-acheter-premiere-maison-quebec.jpg\")
<\/div>\n<\/figure>\nGetting a mortgage for a first time home buyer in Quebec<\/h2>\nCredit file<\/h3>\n
Check your credit report before applying for a mortgage. Any potential lender will review your credit history to determine whether or not they will approve your mortgage\u00a0application.<\/p>\n
Therefore, our mortgage brokers advise you to<\/p>\n
- \n
- request a copy of your credit report<\/li>\n
- make sure that there are no errors by validating it with you.<\/li>\n<\/ul>\n
Mortgage Pre-Approval<\/h3>\n
To obtain your\u00a0mortgage, you must be pre-qualified, our teams can accompany you.<\/p>\n
Determining your down payment for your first home<\/h3>\n
Our mortgage brokers offer you several solutions to finance your down payment for your first home.<\/p>\n
TFSA<\/h4>\n
Starting in 2023,\u00a0TFSAPP will be the new way to buy your first home<\/a>\u00a0by allowing you to save for your down payment.<\/p>\n
RSP<\/h4>\n
Another option would be\u00a0to buy your home with the savings you have accumulated in your RSP.<\/a>\u00a0This is called a HBP (Home Ownership Plan)
\nThe RSP is an account that allows you to save for your retirement or for a first time purchase of a home, condo or qualifying real estate.
\nThe money deposited in your RSP is deductible from your income and generates tax refunds.<\/p>\nHBP<\/h4>\n
For all first time home buyers in Quebec, you can\u00a0HBP to access home ownership<\/a>\u00a0by withdrawing up to $35,000 from your RSP without paying taxes.<\/p>\n
First-Time Homebuyer Grant in Quebec<\/h4>\n
There are many programs to help you buy your first property in Quebec.<\/p>\n
– CMHC Grant<\/p>\n
For all first time home buyers in Quebec, the Canadian Mortgage\u00a0Corporation offers you a grant of 5 to 10% of the value of your home. Do not hesitate to contact us, we will be able to give you the details.<\/p>\n
To qualify, you must meet several conditions:<\/p>\n
- \n
- your income must not exceed $120,000 and the amount of the mortgage must be limited to 4 times the eligible income<\/li>\n
- Your down payment must come from traditional funds (Savings, RSP, Donation).<\/li>\n<\/ul>\n
– Municipal Programs<\/p>\n
Many cities have municipal programs to facilitate home ownership.<\/p>\n
For example, the City of Montreal offers a homebuyer support program that allows you to obtain, under certain conditions, financing and a refund of the welcome tax, depending on your financial situation.<\/p>\n
First-time homebuyer incentive<\/h4>\n
The first-time homebuyer incentive allows you to obtain 5 to 10% of the purchase price of your property for the down payment.<\/p>\n
Personal savings<\/h4>\n
If you are planning to buy a property in the near future, start saving now. There are different savings and investment options available. We recommend that you talk to your financial advisor.<\/p>\n
Family donation<\/h4>\n
It is possible to fund your down\u00a0payment<\/a>\u00a0with a gift from a family member. Make sure it is a free gift, commonly called a “donation”.<\/p>\n
Rent with an option to buy<\/h4>\n
Lease purchase is a method that allows you to purchase a home\u00a0over\u00a0a period of 2 to 3 years. In this case, a portion of the rent will be used as a down payment. However, be careful, not all banks accept this method, the rules are strict so that a portion of the rent can be deducted and considered as a down payment at the time of purchase.<\/p>\n
\n ![\"mise-de-fond-premiere-maison-quebec\"](\"https:\/\/hypotheques.ca\/wp-content\/uploads\/2023\/03\/62e1505721c0f4322b1bccf9_mise-de-fond-premiere-maison-quebec.jpg\")
<\/div>\n<\/figure>\nDetermining your down payment for your first home<\/h3>\n
Banks<\/h4>\n
Banks offer their mortgage products. The disadvantage is that they offer you mortgage products with rates and conditions that you cannot compare.
\nIn case of\u00a0early repayment, the\u00a0penalties\u00a0can be very high.<\/p>\nBy consulting only your bank, you are depriving yourself of the big picture that a\u00a0mortgage broker\u00a0offers, by comparing all the options on the market<\/p>\n
Mortgage brokers<\/h4>\n
The best way is to go through a\u00a0mortgage broker, who will research the best conditions for you and find you a mortgage loan at a rate that is most advantageous for you. In addition, you don’t have to pay any fees!<\/p>\n
Mortgage Loan Insurance<\/h3>\n
If your down payment for your first home is less than 20%<\/strong>, your loan must be insured (CMHC,\u00a0Canada Guaranty,\u00a0Sagen)<\/p>\n
This insurance protects your mortgage lender from any default on your part and allows you to obtain lower interest rates than uninsured loans (with more than 20% down payment).<\/p>\n
\n ![\"buy-your-first-home-in-quebec\"](\"https:\/\/hypotheques.ca\/wp-content\/uploads\/2023\/03\/62e1508d0231aff08a9e5aad_comment-acheter-premiere-maison-quebec-1.jpg\")
<\/div>\n<\/figure>\nTax credits for homeowners in Quebec<\/h2>\n
Canada offers 2 types of tax credits to all first time home buyers.<\/p>\n
Amount for the purchase of a home<\/h3>\n
You are eligible for this type of credit when you have purchased your first property and filed your tax return. The amount can be up to $750 and will allow you to pay for incidental expenses such as legal fees, conveyancing fees etc.<\/p>\n
GST\/HST Housing Rebates<\/h3>\n
Generally, the purchase of new construction is subject to GST and HST, which are taxes that you may be partially reimbursed for depending on the amount of the Purchase.<\/p>\n
Cost of first home purchase Quebec<\/h2>\n
In addition to the purchase price, there are several other costs associated with the purchase of a home.<\/p>\n
Legal costs<\/h3>\n
You must pay legal costs for the closing of your purchase which are approximately $ 1200.00 to $ 2000.00 depending on the notary you choose.<\/p>\n
Adjustment costs<\/h3>\n
You may have to pay adjustment costs to the seller of your home on the day of closing. Sometimes the seller has paid property taxes for a period beyond the closing date. So, on the day of closing, they receive a credit from you that will cover the costs paid by the seller.<\/p>\n
Evaluation of the house<\/h3>\n
Banks may require you to do a home condition\u00a0assessment\u00a0as part of your\u00a0mortgage<\/a>\u00a0purchase or\u00a0refinance<\/a>, this\u00a0assessment\u00a0is usually free but with some banks there may be a fee, in any case no fee can be incurred without you confirming it.<\/p>\n
Home inspection<\/h3>\n
By hiring a professional inspector, you will receive a detailed report( visual inspection ) of your home, not having the home inspected is risky, and may limit your recourse.<\/p>\n
\n ![\"inspection-purchase-premiere-home-quebec\"](\"https:\/\/hypotheques.ca\/wp-content\/uploads\/2023\/03\/62e150b5b0578925a864c037_inspection-achat-premiere-maison-quebec.jpg\")
<\/div>\n<\/figure>\nWelcome tax<\/h3>\n
The welcome tax is an amount that you must pay to your municipality when you purchase your property.<\/p>\n
It is calculated according to the higher of<\/p>\n
- \n
- the purchase price of your home<\/li>\n
- the amount of the consideration recorded in the deed of\u00a0transfer<\/li>\n
- and the amount of the municipal assessment<\/li>\n<\/ul>\n
You must pay it within 30 days of receiving the invoice.<\/p>\n
You may be exempt if:<\/p>\n
- \n
- your taxable base is less than $5,000<\/li>\n
- The\u00a0transfer of\u00a0ownership is done between members of the same family or by a majority shareholder with respect to his company.<\/li>\n<\/ul>\n
Other closing costs<\/h3>\n
- \n
- interest\u00a0readjustment (based on the date the loan was disbursed)<\/li>\n
- cost of certificate of location, title insurance<\/li>\n
- municipal or township levies<\/li>\n
- estoppel certificate<\/li>\n
- mortgage loan insurance premium<\/li>\n
- provincial sales tax for mortgage insurance premium<\/li>\n<\/ul>\n
Annual fees for first-time homeowners in Quebec<\/h2>\n
In addition to the costs of buying a property, you must consider the annual fees when owning a home in Quebec.<\/p>\n
Home insurance<\/h3>\n
You must have\u00a0home insurance\u00a0to protect your home and belongings.<\/p>\n
![\"financing-purchase-first-home-quebec\"](\"https:\/\/hypotheques.ca\/wp-content\/uploads\/2023\/03\/62e150d80231af7a3d9e7985_financement-achat-premiere-maison-quebec.jpg\")
<\/div>\n<\/figure>\n