· that HST DOES NOT apply to existing or resale homes;
· that HST only applies to new home construction;
· that Buyers of new homes are eligible for rebates up to a maximum rebate of $26,250;
· that homes priced at more than $525,000 are eligible for a flat rebate of $26,250
(This New Housing Rebate applies to personal, primary residences and to Rental Housing if they qualify under the Enhanced new rental housing rebate program. New Housing Rebate is not available to secondary residences or vacation properties).
· that HST on new home construction is different than the PTT (Property Transfer Tax) which is applied on new & existing home purchases. FIRST-TIME Home Buyers may qualify for a PTT EXEMPTION.
FIRST-TIME HOME BUYERS - DO YOU KNOW?
· you only require 5% down as the minimum for your home/strata purchase;
· you will have to qualify for a 5-year term mortgage, but you can take out a 1,2,or 3 year term if you prefer;
· you will be best served to be prequalified by a Mortgage Broker for financing.
BEFORE writing an offer your REALTOR® can negotiate from a stronger position for you if they can tell the Seller that you have been prequalified;
It’s also suggested that you receive a letter from your Mortgage Broker or Lender stating what price range you have been prequalified to purchase in;
Once you have an offer accepted, you or your REALTOR® should contact the Mortgage Broker or Lender as soon as possible so they can begin the process on granting you the commitment you need to remove your subject-to financing condition (this needs to be done in a timely manner as normally a Buyer is given 7-10 business days to remove this condition and the Lender must have an appraisal completed);-upon receiving the good news that the financing has been approved for the purchase of your first home, it is advisable to ask the Mortgage Broker for a written notice of commitment (important to read to ensure no conditions).