First Time Home Buyer Incentive

What is First Time Home Buyer Incentive?

‣ This incentive can help you purchase your first home by helping with 5% or 10% or the purchase price.

‣ This incentive will help first-time homebuyers without adding financial burdens.

‣ There are no additional monthly payments for it.

‣ Buyers must meet minimum insured mortgage down payment requirements.

‣ Under the plan, the government would help eligible first-time buyers by helping up to 10% of the purchase price of a home to reduce   mortgage amount and keep monthly payments lower.

‣ The program would be administered by CMHC, the crown corporation that insures most Canadian mortgages on homes purchased         with a down payment of less than 20% of the price.

This is how it works…

‣ Buyers have at 5% of the house price for downpayment

‣ The incentive will be limited to households with a maximum combined income of $120,000

‣ The mortgage and incentive amount together can’t be more than four times the household income

‣ Buyers of newly-constructed homes would get 10% of the house price

‣ Buyers of an existing property would get 5% of the house price

You have to pay it back

‣  Since it’s a shared equity program by the Government, you have to pay it back.

‣  If you got 5% or 10% of the purchase price, you will pay back the same % of the selling price when you sell your home.

‣  If you do not sell your home within 25 years, you must still repay the same % of the fair market value of your home at that time.