First Time Home Buyers Incentive Plan
KNOW AND UNDERSTAND ALL OF YOUR OPTIONS
Features of Program
- Minimum 5% down payment required from savings, RRSPs, Gift. Borrowed down payments are not eligible
- 5% can be shared on existing homes and 10% on new construction homes. This is given via an interest free loan
- Household income cannot exceed $120,000
- The combined mortgage and incentive amount cannot exceed 4 times the qualified income amount
- The loan must be paid back when the property is sold or after 25 years and repayment amount is based on the property's sale price
- The Incentive is registered as a second mortgage on the title and therefore may restrict any further borrowing eg. HELOC
- There is no option for monthly installment payments, the loan must be repaid in one payment / lump sum either when the home is sold or after 25 years. The incentive can also be repaid anytime without penalties prior to the 25 years
- Available for insured mortgages only eg. CMHC, Genworth and Canada Guaranty
- The insurance premium payable is based on the total amount of down payment, eg. if you put a total of 10% down payment (5% savings and 5% incentive) the insurer premium is calculated on amount of total down payment eg. 3.1% of the total loan amount
You are considered a first-time homebuyer if you meet one of the following criteria:
- You have never purchased a home before
- You have gone through a breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements).
- In the last 4 years, you did not occupy a home that you or your current spouse or common-law partner owned
- As long as one applicant on the mortgage is eligible as a First Time Home Buyer your mortgage is eligible for the FTHB Incentive
Please contact me to discuss whether the new FTHB Incentive is right for you.