Types of Canadian Housing Grants

Canadian homeowners can use government housing grants, financial breaks and incentives, to save money on their home. If you are purchasing a home, remodelling, or doing necessary repairs, there are savings to be had.

Most plentiful is the financial aid seen for low-income Canadian citizens that need a bit of help in order to purchase their family a home or conduct necessary repairs. The Residential Rehabilitation Assistance Program, otherwise known as the RRAP is just one of these financial assistance tools. The RRAP provides funding to low-income persons who own and occupy substandard housing so that they can repair their housing in order to meet the minimum federal health and safety standards. No Canadian should be forced to live in run down, unsafe housing, regardless of their financial situation.

There is also financial aid for low income families whose houses are in need of repairs but perhaps are not repairs deemed necessary for ‘minimum health and safety standards’. Under the Emergency Repair Fund, these low-income homeowners and tenants of rural Canadian areas are likely eligible to receive funds to make emergency repairs to their homes in order to make them fit for habitation.

The Mortgage Loan Insurance program is another goody in the basket of Canadian grants. This is a multi-faceted program that grants a 10% refund on its mortgage loan insurance premium when a borrower of any income bracket, buys or builds an energy-efficient home or makes energy-saving renovations to an existing home. It also provides free insurance on loans granted by approved lenders for the purchase, construction, renovation, or refinancing of single-family homes or multiple rental housing.

Lastly Canadians can also expect a tax rebate on their purchase of a new home. This is a GST/HST rebate of up to about 20% for homebuyers that purchase their property directly from a builder. It doesn’t even have to be a brand new house per say, in fact buyers of the following properties can and will qualify for this free money rebate:

  • a new house including condominiums;
  • a substantially renovated house;
  • a modular or mobile home;
  • a floating home; and

Do keep in mind, however, that the rebate will go to the person who paid the GST/HST. In the case of rental property, the rebate always goes to the landlord.