What is the Incentive?
The First-Time Home Buyer Incentive makes it easier for you to buy a home and lower your monthly mortgage payments. This program is a shared equity mortgage. This means that the government shares in the upside and downside of the property value. It allows you to borrow 5 or 10% of the purchase price of a home. You pay back the same percentage of the value of your home when you sell it or within a 25-year window.
It works like this:
Just as the name implies, this incentive is for first-time homebuyers. You’re considered a first-time homebuyer if:
Do I Qualify?
These are a few criteria to determine your eligibility for the First-Time Home Buyer Incentive:
The Incentive is like a second mortgage on your home. Your first mortgage must be greater than 80% of the value of the property and is subject to a mortgage loan insurance premium. It also must be eligible through Canada Guaranty, CMHC or Genworth.
The insurance premium is based on the loan-to-value ratio of the first mortgage only. That is, the first mortgage amount divided by the purchase price. You don’t pay mortgage insurance on the incentive – it is included with the total down payment.
The type of home you plan to purchase plays a factor. The table indicates the type of home that qualifies for the incentive and how much of an incentive it may be eligible to receive.
PROPERTY TYPE INCENTIVE AMOUNT (%)
- New Construction 5% or 10%
- Existing Home 5%
- New and existing mobile/manufactured home 5%
- Residential properties can have 1 to 4 units and include:
Other details you need to know
The Incentive may be associated with additional costs:
Information Source: Government of Canada, National Housing Strategy
Full article and information can be found here: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
Use this information as a starting point. We cannot be held responsible for any errors, omissions or fat finger typing in these articles. Please do your own due-diligence as this information may be outdated.
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