Buying a home can be expensive but fret not! That’s where Canada’s First-Time Home Buyer Incentive comes in.
This incentive helps qualified first-time homebuyers purchase their first home without increasing the amount they must save for a down payment.
Starting September 2nd, eligible first-time buyers who have the minimum down payment for an insured mortgage with CMHC, Genworth or Canada Guaranty, can apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.
This means that, for the purchase of an existing home, an incentive amount of 5 percent may be available. For the purchase of a newly constructed home, an incentive amount of 5 percent or 10 percent may be available!
With no required on-going repayments, the incentive isn’t interest bearing, and the borrower can repay the incentive at any time without a prepayment penalty. That being said, the buyer must repay the incentive after 25 years. If the property is sold, the government shares in the upside and downside of the change in the property value.
The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000. At the same time, a participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual household income.
Sound interesting? Visit www.placetocallhome.ca or book a free consultation with us for more details. We’d be more than happy to guide you through your whole home-buying process.
