Emily Southey<\/a> | 11 minute read[\/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” custom_margin=”||32px|||” 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” 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>\nIf you currently receive disability income in Canada and want to learn more about the process of buying a house, you are in the right place. There are all kinds of government programs designed to help people on\u00a0disability purchase a home. We provide an in-depth guide into these programs and expert tips on how to buy a house with a disability income below.\u00a0<\/p>\n
–<\/span><\/p>\nTypes of Disability Income in Canada<\/h2>\n
Before diving into the government programs people on disability can take advantage of to buy a home, let\u2019s begin by discussing the types of disability income in Canada. There are two main types of disability assistance in Canada: disability assistance payments and lifetime disability assistance payments.<\/p>\n
–<\/span><\/p>\n\n- <\/span>Disability assistance payments (DAPs): Disability assistance payments are payments that come from a registered disability savings plan (RDSP) to the beneficiary or their estate. A DAP payment is a singular payment that can be requested when desired and may contain anything from bonds or grants to contributions, proceeds from rollovers, or income earned.\u00a0\u00a0<\/li>\n
- <\/span>Lifetime disability assistance payments (LDAPs): LDAPS must be paid yearly once started and until the plan is terminated or the beneficiary passes away. Please note that lifetime disability assistance payments have an annual withdrawal limit.\u00a0<\/li>\n<\/ul>\n
–<\/span><\/p>\nHow to Buy a House in Canada While on Disability Income<\/h2>\n
Now that the two main types of disability income in Canada have been outlined, let\u2019s move on to the process of buying a house in Canada while on disability income. As mentioned, there are several government programs intended to make it easier for those on disability to purchase a home. We break down a few of these programs below.\u00a0<\/p>\n
–<\/span><\/p>\nDisability and First-Time Home Buyers\u2019 Tax Credit<\/b><\/h3>\n
The Disability and First-Time Home Buyers\u2019 Tax Credit is a financial incentive offered by the federal government of Canada. It allows Canadians with disabilities to claim a $5,000 tax credit when they purchase a qualifying property. To be eligible for the Disability and First-Time Home Buyers\u2019 Tax Credit, several conditions must be met. First, the disability must be of a qualifying nature and must be documented. Second, the individual with a disability must have a disability that limits their ability to do certain things. Third, the property purchased must have accessibility in mind. And fourth, the property must qualify. What is a qualifying property, you may be wondering? The CRA defines a qualifying property as:<\/p>\n
–<\/span>\u00a0<\/p>\n\n- <\/span>The property is in Canada and could be any type of home: single-family, semi-detached, townhouse, mobile home, condominium unit, apartment, and more.\u00a0<\/li>\n
- <\/span>You must intend to occupy the property yourself or the related person with a disability must occupy the home as a principal place of residence no later than one year after buying it.<\/li>\n<\/ul>\n
–<\/span><\/p>\nThe Disability and First Time Home Buyers\u2019 Tax Credit is non-refundable and you must be approved by the CRA before applying for the credit. Please note that if you are a person with a disability or are buying a home for a related person with a disability, you are not required to also be a first-time homebuyer to take advantage of the tax credit. That said, the home must be purchased so that the person with a disability can live in a more accessible dwelling or in an environment better suited to their needs and care.<\/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
“There are several government programs intended to make it easier for those on disability to purchase a home.”<\/h2>\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” custom_padding=”||0px|||” 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=”||0px|||” 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
Housing Program for Disability Income<\/b><\/h3>\n
A second government program to help ease the burden of buying a home for Canadians with disabilities is the Housing Program for Disability Income. The program was introduced in 1986 and since then it has evolved to offer loans and grants to people with disabilities. Specifically, under this program, eligible applicants can receive grants and loans of up to $10,000, depending on their income level.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nObtaining a Mortgage When on Disability Income<\/h2>\n
Even with the government incentives mentioned above, you may be wondering what other options a person on disability income has when it comes to buying a home. Just like any other homebuyer, a Canadian on disability income can obtain a mortgage to help finance their home purchase. However, the process might look a bit different, especially if you are living on a fixed income with low or bad credit. Luckily, there are mortgage programs out there specifically designed for homebuyers with disabilities. The proof needed to qualify may include documentation showing your income and financial assets, as well as a bank statement that details the disability income you are receiving (if applicable). Keep in mind that not all mortgage lenders will accept disability payments as income, so it\u2019s important to find this out upfront as this can significantly impact your interest rates.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nTips for Buying a House in Canada When on Disability Income<\/h2>\n
Follow the tips below to make buying a house in Canada on disability income as hassle-free as possible.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\n1. Determine your needs<\/b><\/h3>\n
Before house hunting, you must first determine your personal needs. A few questions to ask yourself to help you narrow down what you’re looking for include:\u00a0<\/p>\n
\u00a0–<\/span><\/p>\n\n- <\/span>How many people will be living in this home?<\/li>\n
- <\/span>How many rooms and bathrooms do I need?<\/li>\n
- <\/span>Will I be driving? Do I need a parking spot?\u00a0<\/li>\n
- <\/span>If I am not driving, is the home located near public transit?\u00a0<\/li>\n
- <\/span>Where is my job located? What is the maximum amount of time I am willing to travel from my home to my place of work?<\/li>\n
- <\/span>Does the home or neighbourhood have the facilities\/amenities I require (for example, school, grocery store, doctor\u2019s office, restaurants, gym)?<\/li>\n<\/ul>\n
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