What First-Time Home Buyers In Stony Plain Need to Know in 2025

Welcome to the starting line of your home-buying journey in Stony Plain! Several incentive programs are available for first-time buyers, and with thoughtful planning, these can greatly improve your chances of landing that elusive first home. As top-rated Stony Plain mortgage brokers, we’re here to guide you every step of the way, taking you right to the front door of your dream home.

Are you ready to stop paying rent and start investing in a place of your own? We understand. The road to buying your first home is filled with excitement, a few butterflies, and lots of questions. But here’s the good news: our team is here to make the process as smooth and stress-free as possible, blending expert advice with a personalized approach!

We take the hassle out of home financing so you can focus on finding your dream property within your budget.

Stony Plain First-time Home Buyer Programs

As a first-time home buyer in Stony Plain, you can take advantage of three fantastic programs to help you level up on your path to homeownership:

30-Year Amortization for First-Time Buyers
First-time buyers have the option to choose a 30-year amortization on their mortgage.

• Lower Monthly Payments: A longer amortization period spreads your mortgage payments over 30 years, reducing the monthly amount and increasing affordability.
• Flexibility: While monthly payments are lower, you can still make additional payments or pre-payments to pay off your mortgage faster without penalty (depending on lender terms).
• Best Fit: This option is ideal for buyers who want to manage their cash flow while navigating the costs of homeownership.

The Home Buyers' Plan
The Home Buyers' Plan (HBP) allows you to withdraw from your Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) to buy or build a qualifying home.

• Increased Withdrawal Limit: As of 2024, you can withdraw up to $60,000 per individual (up from $35,000) tax-free. Couples can combine their withdrawals for a total of $120,000.
• Combine with FHSA: You can combine HBP withdrawals with funds from your First Home Savings Account (FHSA) for the same home, provided all conditions are met.
• Plan Ahead: Withdrawals typically take 2–10 business days, so ensure this aligns with your timeline.

First-Time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit lets you claim $10,000 for the purchase of a qualifying home.

Eligibility Requirements:
• You or your spouse/common-law partner must have purchased a qualifying home and not owned a home in the year of purchase or the previous four years (unless qualifying due to a disability).
• The home must be registered in your or your spouse/common-law partner’s name and located in Canada. Eligible properties include houses, townhouses, mobile homes, condos, and certain apartments.
• You must intend to occupy the home as your principal residence within one year of purchase.
• For individuals with disabilities, the first-time buyer requirement is waived if you qualify for the disability tax credit or are purchasing for a related eligible person.

Down Payment Sources for First-Time Buyers

When it comes to saving for your first home in Stony Plain, having the right tools and strategies can make all the difference. Here are some of the most effective down payment options available for first-time buyers: 

Registered Retirement Savings Plan (RRSP)
Your RRSP can be an excellent resource for your down payment when paired with the Home Buyers' Plan.

• Tax-Free Withdrawals: Withdraw up to $60,000 (or $120,000 for couples) tax-free under the HBP.
• Dual Benefits: Contributions to your RRSP are tax-deductible, potentially increasing your tax refund, which you can then reinvest toward your down payment.
• Planning Tip: Learn more about leveraging your RRSP for your down payment in our upcoming blog post, Borrowing to Save: RRSP & Home Buyers' Plan!
• Pro Tip: did you know there are RRSP loans specifically designed for first-time home buyers like you? Click here to learn more!

First Home Savings Account (FHSA)
The FHSA combines the benefits of an RRSP and TFSA to help you save for your first home.

• Annual Contributions: Contribute up to $8,000 per year, with a lifetime maximum of $40,000.
• Flexible Use: Combine FHSA withdrawals with RRSP funds under the HBP to maximize your down payment.

Gifted Down Payment
If you have immediate family members who can help, a gifted down payment can give you a significant boost.

• Lender Requirements: Most lenders require a signed gift letter confirming the funds are a true gift and do not need to be repaid.
• No Debt Impact: Gifted funds don’t count toward your debt-to-income ratio, making them an ideal way to supplement your own savings.

Automatic Savings
Building your down payment doesn’t have to feel overwhelming. Automating your savings can make a big difference over time.

• High-Interest Savings Accounts (HISAs): Park your savings in an account that grows with competitive interest rates.
• Round-Up Apps: Use apps that round up purchases and deposit the spare change into a savings account to accelerate your savings.

Getting Started

Starting on your journey to buying your first home starts with understanding the mortgage process and taking the right first steps. Getting pre-approved is one of the most important parts of this process, setting the foundation for a smooth and successful home-buying experience.

The Mortgage Process Simplified
Here’s what you can expect:

1. Initial Consultation: Share your financial goals and plans with us so we can understand your needs.
2. Pre-Approval: We’ll help you determine your budget based on your income, credit score, and current mortgage guidelines.
3. House Hunting: With your pre-approval in hand, you’ll know your affordability range, so you can focus on homes that fit your budget.
4. Final Approval: Once you’ve found the perfect home, we’ll finalize your mortgage application with the lender.
5. Closing Day: Celebrate your new home as we guide you through the final steps!

Why Pre-Approval Matters
Getting pre-approved isn’t just a recommendation — it’s a game-changer for first-time buyers. Here’s why:

• Accurate Affordability: A pre-approval gives you the most precise estimate of how much home you can afford, factoring in the latest mortgage guidelines and interest rates.
• Stronger Offers: Sellers and Realtors take pre-approved buyers more seriously, giving you a competitive edge in the market.
• Rate Holds: Secure your interest rate for up to 120 days, protecting you from potential increases while you shop for your home.
• Identify Challenges Early: If there are areas to improve (like credit score or debt ratio), we’ll tackle them together to strengthen your application.

Ready to Get Started?
Don’t wait to take the first step toward owning your dream home. Start your pre-approval today and let us guide you every step of the way.