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.