by Patrick Lamonde Embarking on the journey to homeownership in Gatineau is both exciting and financially significant. To support first-time buyers, various federal and provincial programs offer financial assistance and incentives. This guide outlines key programs available to help you maximize these benefits.
1. Home Buyers’ Plan (HBP)
The HBP allows first-time buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home. Withdrawals are tax-free, provided they are repaid within 15 years. Eligibility requires that you have not owned a home in the previous four years and intend to occupy the new property as your principal residence within one year.
2. Tax-Free First Home Savings Account (FHSA)
Introduced in 2023, the FHSA enables prospective first-time home buyers to save up to $40,000 tax-free. Contributions are tax-deductible, and withdrawals for purchasing a home are non-taxable. The annual contribution limit is $8,000, and the plan can be combined with the HBP for additional benefits.
3. Home Buyers’ Tax Credit
Quebec offers a non-refundable tax credit of up to $1,500 for first-time home buyers. To qualify, you or your spouse must have purchased a qualifying home intended as your principal residence and not have owned a home in the past four years. This credit can be claimed in the year of purchase by completing the relevant sections on your income tax return.
4. Rénoclimat Program
For those considering purchasing an older home in Gatineau, the Rénoclimat program offers financial assistance for energy-efficient renovations. Homeowners can receive $150 per rough opening for window and door replacements with ENERGY STAR-certified models, among other incentives. This program aims to improve energy efficiency and reduce utility costs.