In March of this year, the Federal Government announced in its 2019 budget, the First Time Buyers Home Incentive program. This is great news for first-time buyers who are wondering how they are going to cobble enough money together for a downpayment.
The First Time Buyers Home Incentive Program or “shared equity mortgage”, seeks to assist first time buyers in reducing their monthly mortgage payment without increasing their downpayment. Through the Incentive program, First-time buyers will receive 5% for purchase of a resale home, and up to 10% for purchase of a new build. Two caveats to keep in mind, first-time buyers must earn a maximum combined or single income of $120,000 in order to qualify, and the incentive program applies to home purchases up to $480,000.
Also, the loan is provided by the Canada Mortgage Housing Corporation or the CMHC. Note that you do not pay interest on the loan. You may pay back the loan at any time up to 25 years, and the repayment is based on the current value of the property.
The CMHC has announced a launch date of September the 1st 2019 barring any unforeseen circumstances.
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