[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”32px||||false|false” da_disable_devices=”off|off|off” global_colors_info=”{}” custom_margin__hover_enabled=”off|desktop” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”75px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”3rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”3.2rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”1px||3px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||14px|||” global_colors_info=”{}”]<\/p>\n
From determining how much you can afford to spend, to homebuyer incentives, to securing a mortgage, we\u2019ve got tips to help lower-income earners purchase a home.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.18rem” custom_margin=”||10px|||” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n By Emily Southey<\/a> | 13 minute read<\/p>\n [\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_title][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_padding=”40px|||||” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n Buying a house<\/a><\/span>\u00a0is a goal for many Ontario residents. But it can feel like a daunting task, especially with a low income. If you\u2019re wondering whether your income level is high enough to qualify for a mortgage and buy a home in Ontario<\/a>, you\u2019ve come to the right place. Though buying a house in Canada with a low income may come with a unique set of challenges, doing so is far from impossible. Thanks to the variety of loan options, incentives, and assistance programs available to homebuyers in Canada, homeownership is an attainable goal for anyone regardless of income level. Keep reading to learn more about buying a home with low income in Ontario, including how to determine how much you can afford to spend on a home.<\/p>\n –<\/span><\/p>\n Yes, Ontario residents with lower-than-average incomes can buy a home \u2e3a it just might be a bit trickier to do so. There are no minimum income requirements for buying a home anywhere in Canada. However, mortgage lenders will consider your income level, credit utilization ratio, credit score, and more when approving you for a loan. That said, obtaining a homebuyer loan might be easier than you think, especially once you realize the various programs and incentives you might qualify for.\u00a0<\/p>\n –<\/span><\/p>\n The first step in the homebuying process is determining how much you can afford to spend on a home. While this is important regardless of the outcome, it is crucial for those with lower incomes, as overspending can cause serious financial stress. To determine your homebuying budget, follow the steps below.\u00a0<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n First, calculate your gross household income. This is the combined income that you can use to qualify for a mortgage loan. Gross household income may include your employment income, business income, child tax credit, pension, disability benefits, and more. If you are buying a home with someone else, such as your spouse or partner, make sure to include their income as well. Your gross household income is your total income before taxes.<\/p>\n –<\/span><\/p>\n When determining how much you can afford to spend on a new home with a low income, you will need to consider your current debt level. Mortgage lenders will assess your existing debt when deciding whether to approve you for a mortgage loan and at what interest rate. Do a deep dive into your finances and add up all outstanding debt. This may include student loans, car loans, and credit card payments.<\/p>\n –<\/span><\/p>\n When you purchase a house, you will be required to make a down payment. Down payments are most commonly paid for in cash, however, some may be paid for with a mortgage loan or a combination of cash and a loan. To determine how much you can afford to spend on a house, you will need to examine your savings. Your down payment amount impacts how much money a mortgage lender will loan you. The higher the down payment, the better the loan terms. So look at your savings account and consider how much you could set aside for a down payment. Remember that homebuyers are required to make a minimum down payment of 5% of the purchase price in Canada. Most down payments range from 5% to 20%. It\u2019s also worth noting that if your down payment is less than 20%, your mortgage lender may require you to take out\u00a0mortgage loan insurance,<\/a><\/span>\u00a0which is another expense to budget for.<\/p>\n –<\/span><\/p>\n The next step in determining how much you can afford to spend on a home is to get\u00a0pre-approved for a mortgage.<\/a><\/span>\u00a0Mortgage pre-approvals are free of charge and provide homebuyers with invaluable information. A mortgage is a type of loan homebuyers use to purchase a home. Most homebuyers in Canada who cannot afford to buy a home with cash will need to take out a mortgage. If your income is below-average, you will likely require a mortgage loan to finance the purchase of your home.<\/p>\n Mortgage pre-approval is when a mortgage lender reviews the information provided and either confirms or denies that you would qualify for a mortgage loan if you were to submit a formal application. Most mortgage pre-approvals specify a term length, interest rate, and principal amount. The principal amount is one of the most important pieces of information, as it gives low-income homebuyers a realistic idea of what they can afford to spend on a home.<\/p>\n It must be noted that getting pre-approved for a mortgage does not mean you are obligated to apply for a mortgage with a specific lender. Therefore, there is no harm in getting pre-approved for a mortgage from multiple lenders, even if you haven\u2019t decided you want to purchase a home yet. As mentioned, mortgage pre-approval is a fantastic method for low-income buyers to determine whether they can afford to buy a home.<\/p>\n When applying for mortgage pre-approval, low-income buyers should be prepared to provide the following documentation and information:<\/p>\n \u00a0–<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Section” module_id=”sell-widget” _builder_version=”4.24.2″ _module_preset=”default” background_color=”#f0faf4″ custom_padding=”0px||0px||false|false” da_popup_slug=”sell-widget” da_disable_devices=”off|off|off” global_module=”300579″ global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” _builder_version=”4.24.0″ _module_preset=”default” background_enable_color=”off” module_alignment=”center” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.24.0″ _module_preset=”default” custom_css_main_element=”margin: auto;” global_colors_info=”{}”][et_pb_image src=”https:\/\/wahi.com\/wp-content\/uploads\/2025\/01\/Realtors-Card.png” alt=”Find a Realtor for You” title_text=”Find a Realtor for You” src_tablet=”” src_phone=”https:\/\/wahi.com\/wp-content\/uploads\/2024\/04\/Frame-7115-1.png” src_last_edited=”on|phone” _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.24.0″ _module_preset=”default” custom_css_main_element=”margin: auto;” global_colors_info=”{}”][et_pb_text _builder_version=”4.24.2″ _module_preset=”default” header_font=”Poppins|700|||||||” header_line_height=”44px” header_2_font=”|700|||||||” header_2_font_size=”22px” header_2_line_height=”44px” max_width=”100%” max_width_tablet=”” max_width_phone=”270px” max_width_last_edited=”on|phone” module_alignment=”center” custom_margin=”||10px||false|false” header_text_align_tablet=”” header_text_align_phone=”center” header_text_align_last_edited=”on|phone” header_font_size_tablet=”” header_font_size_phone=”30px” header_font_size_last_edited=”on|desktop” custom_css_main_element=”font-weight: 800 !important;” custom_css_free_form=”#sell-widget h1{|| font-weight: 700 !important;|| font-size: 30px;||}” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.24.2″ _module_preset=”default” text_font_size=”22px” text_line_height=”26px” header_font=”||||||||” header_line_height=”26px” header_2_font_size=”22px” header_2_line_height=”26px” max_width=”100%” max_width_tablet=”” max_width_phone=”270px” max_width_last_edited=”on|phone” module_alignment=”left” custom_margin=”||30px||false|false” text_font_size_tablet=”” text_font_size_phone=”18px” text_font_size_last_edited=”on|phone” text_orientation_tablet=”” text_orientation_phone=”center” text_orientation_last_edited=”on|phone” module_alignment_tablet=”” module_alignment_phone=”center” module_alignment_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n We’ll match you with a proven agent in your area.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/wahi.com\/ca\/en\/find-a-realtor-in-your-area” button_text=”Learn more” button_alignment=”left” button_alignment_tablet=”” button_alignment_phone=”center” button_alignment_last_edited=”on|phone” _builder_version=”4.24.2″ _module_preset=”default” custom_button=”on” button_text_size=”12px” button_border_radius=”4px” button_letter_spacing=”1px” button_font=”|700|||||||” button_use_icon=”off” custom_margin=”||||false|false” custom_padding=”10px|20px|10px|20px|true|true” button_text_size_tablet=”” button_text_size_phone=”13px” button_text_size_last_edited=”on|phone” custom_css_main_element=”font-weight: 800 !important;” custom_css_free_form=”#sell-widget a.et_pb_button{|| font-weight: 600 !important;||}||||@media (max-width: 600px){||#sell-widget a.et_pb_button{||display: block;||text-align: center;||}||}” global_colors_info=”{}” custom_css_main_element_last_edited=”on|phone” custom_css_main_element_phone=”font-weight: 800 !important;||display: block;||text-align: center;” custom_css_main_element_tablet=”font-weight: 800 !important;”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n If you are successfully pre-approved for a mortgage and decide to move forward with purchasing a home, it\u2019s time to set your budget. Your budget should be based on the principal amount provided in your mortgage pre-approval(s). Keep in mind that mortgage pre-approvals are estimates, so just because you were pre-approved for a certain amount doesn\u2019t mean you will get that amount. The final mortgage loan you are approved for will depend on the purchase price of the home you buy, along with your down payment. For this reason, if you have a low income, it is recommended to set your budget slightly below the principal amount listed in the mortgage pre-approval. In determining your budget, you may wish to consult with a REALTOR\u00ae. They can give you an idea of the current market conditions and what\u00a0types of homes\u00a0<\/a><\/span>are available within your budget.\u00a0<\/p>\n –<\/span><\/p>\n The final step in determining how much you can afford to spend on a home with a low income is to budget for closing costs. Buying a home in Ontario almost always comes with closing costs.\u00a0Closing costs<\/a><\/span>\u00a0are a combination of legal and administrative fees due when a house closes. These costs vary based on the purchase price and down payment of the home, but homebuyers should allocate between 1.5% and 4% of the purchase price to closing costs. Typically, homebuyers are responsible for paying 100% of the closing costs. However, you can request that the seller pays for all or some of the closing costs in the purchase agreement.\u00a0<\/p>\n –<\/span><\/p>\n Take some of the stress out of buying a house in Ontario with a low income by following the tips below.\u00a0<\/p>\n –<\/span><\/p>\n Did you know that your credit score can impact your ability to get a mortgage? That\u2019s right, having a good or excellent credit score can vastly improve your odds of being approved for a mortgage.\u00a0<\/p>\n Buying a house with bad credit<\/a><\/span>\u00a0can be challenging as traditional lenders may not be willing to accept the risk, forcing you to obtain a high-risk loan from a subprime or private lender. To avoid the high interest rates that come with bad credit mortgages, try to improve your credit score before buying a home. To build your credit score, strive to make all loan payments on time and in full, pay down any and all debt that is feasible, and keep your credit utilization ratio (the amount of total available credit you have compared to the credit you use) beneath 30%. Improving your credit score not only gives you better odds of being approved for a mortgage but can also lead to better interest rates.\u00a0<\/p>\n –<\/span><\/p>\n Since mortgage lenders will assess your current debt levels when deciding whether to approve you for a mortgage and at what rate, paying off as much outstanding debt as possible can help you buy a home. By reducing the total amount of debt you owe, you will lower your debt-to-income ratio, which can significantly increase your odds of mortgage approval. If paying off your debt is not currently feasible, consider consolidating your debts into one lower-interest loan and use the money you save by doing so to pay off your debt.\u00a0<\/p>\n –<\/span><\/p>\n If you are unable to obtain a mortgage on your own due to your low-income status, consider getting a co-signer. In the eyes of mortgage lenders, a co-signer mitigates a borrower\u2019s risk. If the borrower defaults on their mortgage payments, the co-signer will be on the hook for making these payments. Co-signers can be family members or close friends. If you get a co-signer, their financial information will be assessed by the mortgage lender along with yours.\u00a0<\/p>\n If you decide to go the co-signer route, make sure to discuss expectations with your co-signer, such as what you will do if you’re in danger of defaulting on your mortgage.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#ffffff” custom_padding=”||3px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||80px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n If you are successfully pre-approved for a mortgage and decide to move forward with purchasing a home, it\u2019s time to set your budget. Your budget should be based on the principal amount provided in your mortgage pre-approval(s). Keep in mind that mortgage pre-approvals are estimates, so just because you were pre-approved for a certain amount doesn\u2019t mean you will get that amount. The final mortgage loan you are approved for will depend on the purchase price of the home you buy, along with your down payment. For this reason, if you have a low income, it is recommended to set your budget slightly below the principal amount listed in the mortgage pre-approval. In determining your budget, you may wish to consult with a REALTOR\u00ae. They can give you an idea of the current market conditions and what\u00a0types of homes\u00a0<\/a><\/span>are available within your budget.\u00a0<\/p>\n –<\/span><\/p>\n Canadian residents can take advantage of the Government of Canada\u2019s Shared Equity Interest Program. Under this shared equity program, offered by the federal government, a first-time homebuyer can be approved for an interest-free shared equity loan for up to 10% of the purchase price of the new home (or 5% of the purchase price of a resale home). This 10% loan can then be added to your down payment. So if you only had enough savings for a 5% down payment, this loan would allow you to put down 15%. Being able to put down a larger down payment can result in a better mortgage rate. With this type of loan, the government becomes a part-owner of your home, owning a 10% share of your house. When you eventually sell your home, you must pay back the amount borrowed plus 5% of the property\u2019s appreciated value. Through the shared equity interest program, homebuyers have 25 years to repay the 10% loan or until the home is sold. To be eligible for Canada\u2019s shared equity interest program, you must meet the following criteria:\u00a0<\/p>\n \u00a0–<\/span><\/p>\n –<\/span><\/p>\n The Home Buyer\u2019s Plan (HBP) is another federal program that might help Canadians with low incomes purchase a home. How it works is as follows: Homebuyers can withdraw funds from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home. Specifically, first-time homebuyers can withdraw up to $35,000 from their RRSPs tax-free for the purposes of buying a home. Buyers then have 15 years to pay back the withdrawn funds. To be eligible for the Home Buyers\u2019 Plan, you must meet the following criteria:<\/p>\n \u00a0–<\/span><\/p>\n –<\/span><\/p>\n A third assistance program available to first-time homebuyers in Canada is the Home Buyers\u2019 tax credit. This is a non-refundable income tax credit of up to $5,000 available to first-time homebuyers, including those with low incomes. If eligible homebuyers choose to claim this $5,000 income tax credit on a qualifying home, they can receive a tax rebate of up to $750. To be eligible for Canada\u2019s Home Buyers\u2019 tax credit, you must meet the following criteria:\u00a0<\/p>\n \u00a0–<\/span><\/p>\n –<\/span><\/p>\n The fourth incentive, available exclusively to first-time home buyers in Ontario, regardless of income, is the Ontario First-Time Home Buyer Incentive. Under this program, the Government of Ontario offers a land transfer tax refund of up to $4,000 to first-time homebuyers. It applies to resale homes, as well as new construction homes. To qualify for the Ontario First-Time Home Buyer Incentive, you must meet the following criteria:<\/p>\n \u00a0–<\/span><\/p>\nCan I buy a house with low income?<\/h2>\n
Determining how much you can afford to spend on a home<\/h2>\n
\u201cThere are no minimum income requirements for buying a home anywhere in Canada. However, mortgage lenders will consider your income level, credit utilization ratio, credit score, and more when approving you for a loan.\u201d<\/h2>\n<\/div>\n
Calculate your gross household income<\/strong><\/h3>\n
Consider your current debt level<\/strong><\/h3>\n
Determine your down payment amount<\/strong><\/h3>\n
Get pre-approved by a mortgage lender<\/strong><\/h3>\n
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Find the Right REALTOR\u00ae for You<\/h2>\n
Set a purchase price budget<\/b><\/h3>\n
Don\u2019t forget to budget for closing costs<\/b><\/h3>\n
Tips for buying a house with low income in Ontario<\/h2>\n
Improve your credit score<\/b><\/h3>\n
Pay off outstanding debt<\/b><\/h3>\n
Get a co-signer<\/b><\/h3>\n
Take advantage of homebuyer incentives<\/h2>\n
Shared Equity Interest Program<\/b><\/h3>\n
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Home Buyers\u2019 Plan<\/b><\/h3>\n
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Home Buyers\u2019 tax credit<\/b><\/h3>\n
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Ontario First-Time Home Buyer Incentive<\/b><\/h3>\n
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