First Time home buyer incentive.
Are you dreaming of owning your first home? The First Time Home Buyer Incentive program can help make that dream a reality. This initiative, introduced by the Canadian government, aims to make homeownership more affordable for first-time buyers.
What is the First Time Home Buyer Incentive?
The First Time Home Buyer Incentive is a program that provides financial assistance to eligible first-time home buyers. It allows you to finance a portion of your home purchase through a shared equity mortgage with the Government of Canada.
How does it work?
Under this program, the government will contribute 5% or 10% of the home's purchase price, depending on whether it is a new construction or an existing home. This contribution helps reduce your monthly mortgage payment, making it more affordable.
Repayment
The shared equity mortgage is not interest-bearing and does not require ongoing monthly payments. However, you will need to repay the incentive after 25 years or when you sell the property, whichever comes first. The repayment amount is based on the property's fair market value at the time of repayment.
Eligibility
To qualify for the First Time Home Buyer Incentive, you must meet certain criteria:
- You must be a first-time home buyer
- Your total qualifying income cannot exceed $120,000 per year
- The home's purchase price cannot exceed four times your qualifying income
- You must have a minimum down payment of 5% for a new construction or 5% for an existing home
Benefits
The First Time Home Buyer Incentive offers several benefits for first-time buyers:
- Reduced monthly mortgage payments
- Increased purchasing power
- No interest on the shared equity mortgage
- Flexibility to repay the incentive after 25 years or when you sell the property
How to apply
To apply for the First Time Home Buyer Incentive, you will need to work with a mortgage professional. They will guide you through the application process and help you determine your eligibility. You can also visit the official website of the program for more information.
Conclusion
The First Time Home Buyer Incentive is a valuable program that can make homeownership more affordable for first-time buyers. If you meet the eligibility criteria, this incentive can provide you with the financial assistance you need to purchase your dream home. Take advantage of this opportunity and start your journey towards homeownership today!