First Time Homebuyer Incentive

Looking for your first home? Worried about rising home prices? Questioning the mortgage affordability?

These are common worries, but luckily the First Time Homebuyer Incentive may alleviate some of the costs associated with a mortgage. In this blog, we will take you through the incentive process, appropriate financial information and the restrictions that apply as you take your next step in your exciting home buying journey.

We all love to save money and the government may be helping first time home buyers do just that! Yes, you did hear that right! The Federal Government has recognized that as home prices rise, mortgages may become more and more unaffordable. For more on mortgages check out our blog post here and check out the handy CMHC Mortgage Calculator to break down how much your monthly payments would be.

This shared equity incentive is aimed to make buying costs more affordable for the middle class. To qualify, your yearly income must fall below $120,000. The government will provide a "loan" of 5% or 10% as a down payment towards your first home, allowing buyers to put a higher down payment towards the purchase price subsequently lowering your monthly mortgage payments.

That being said, the government is not known for handing out free money - we can all dream though. This incentive is a shared equity loan which is required to be paid back over a 25 year term or when the house is sold, whichever situation arrives first. For example, if a buyer utilized the 5% incentive at the time they purchased the property, upon sale of that same home they would repay 5% of the current value.

The government grant has assisted thousands of Canadians with the cost of investing. Although there are restrictions, especially when it comes to the purchase price of homes in metropolitan areas like Toronto and Vancouver due to rising property costs, this incentive can still help buyers looking to purchase homes in the GTA or condominiums in expensive cities. If you ever have any questions experienced real estate professionals, such as our team, are there to guide you through each and every aspect of this journey.  

Who Qualifies?       

Must be a First Time Home Buyer

First Time Home Buyers with a combined yearly income of less than $120,000

Buyer must have a minimum of 5% down payment on the purchase price

5% or 10% for a buyers purchase of a new build home

5% for a buyers purchase of a resale home 

For More Real Estate Information Visit: https://www.kellyboonerealtor.com/blog/386427