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Buying a home can be an expensive venture. In June 2009, the median cost of home in Canada was more than CAD $300,000. Many homes are much more expensive. Financing and incentives may put the home of your dreams within reach. If you are a first-time home buyer, Canada's Economic Action Plan provides special tax incentives to help make your purchase attractive. Under the First-Time Home Buyers' Tax Credit, individuals buying a home for the first time can receive a CAD $5,000 income tax credit. This helps soften the burden of the various costs and fees connected with buying a home. Additional tax credits are offered through the Government of Canada's Home Buyers' Plan. Contact the Canada Revenue Agency toll-free at (800) 267-6999 for more information or consult your local tax accountant.
If you are not eligible for tax credits, you can still receive financing through a residential mortgage. Major banks, including the Royal Bank of Canada and the Bank of Montreal, offer competitive mortgages. It is best to solicit the assistance of a mortgage broker to guide you through the pre-qualification process and help you find the institution offering the est rates. Call the Canadian Association of Accredited Mortgage Professionals toll-free at (888) 442-4625 to find a local mortgage broker. -
Selecting the right location influences not just the cost of your future home, but also the environment in which you will live or raise your family. Canada's cities and suburbs are vibrant, changing cultural scenes. With immigrants and ethnic minorities forming almost half of the population of many Canadian cities, your search for locations should start first with choosing the cultural atmosphere. Many suburbs outside of major cities such as Vancouver and Toronto are divided into distinctly different cultural zones, while urban centers are typically very diverse and mixed.
Housing costs will also affect your decision. Typically, land costs within urban centers are expensive, and standalone homes are pricey. Suburbs allow individuals to live within access of a city while paying lower housing costs and real property taxes. When selecting a location, take into account its proximity to various amenities and services. For example, you may wish to be close to a school, shopping or public transportation. - While searching for a home to buy, it is crucial to look for the various features and amenities in the home that may make it desirable or undesirable. Heating and cooling is the most critical, due to Canada's potential for extreme weather. Buyers should consult local weather averages to learn how this may impact their future home. For example, Ottawa is renowned throughout Canada for its extremely cold winters and extremely hot summers. Knowing this, a potential buyer should ensure the home has adequate insulation and a working air conditioning and heating system.
- Individuals from the United States may be attracted to purchasing a home in Canada due to the difference between the two countries' currency. The Canadian dollar tends to be valued at a lower price than the U.S. dollar, making real estate a potentially lucrative investment. Such buyers should be aware of the constantly changing values of the exchange market and be alert to the dangers of such investments. Sudden shifts, such as the recession in 2009, can bring the Canadian dollar up to parity with its southern counterpart. Home buyers looking to purchase real estate as investment should work with a financial planner and adviser to carry out their purchase at a time that works in sync with the international market.
