First Time Home Buyer Incentive
What You Need To Know
The upcoming First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage costs without adding to their financial burdens.
- You need to have the minimum down payment of 5% to be eligible
- Your maximum qualifying income is no more than $120,000 a year
- Your total borrowing is limited to 4 times the qualifying income
- Only insured mortgages will be eligible, meaning this will be restricted to those with a down payment worth less than 20% of the purchase price.
- You need to be considered a first-time home buyer according to government rules
HOW IT WORKS
The program will be administered by Canada Mortgage and Housing Corp. (CMHC), which will pay you the following:
- 5% of the purchase price for an existing home
- 5% or 10% for the value of a new home
This incentive will be in exchange for an equity stake. Once the homeowner sells, they’re obligated to repay CMHC.
WHEN DOES IT START?
This Government of Canada program will begin on September 2, 2019 with mortgage closing dates of November 1, 2019 or later.
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