Hello First Time Home Buyers'!
As many of you may already be aware, the new First Time Home Buyers' Incentives are now in effect and here is what you need to know!
Maximum qualifying income must be no more than $120,000
Homeowner’s total borrowing (including the incentive) is limited to 4 times the qualifying income
5% is offered for first-time home buyers' purchase of a re-sale home
5% is offered for first-time home buyers' purchase of a new or re-sale mobile/manufactured home
5% or 10% for a first-time home buyers' purchase of a new construction
How it Works:
Through the FTHBI program, a homeowner shares equity in their purchase with the Government of Canada. This means the Government shares in the upside and downside of the value of the property at the time of repayment
The incentive provided to the borrower must be repaid at the earlier of either 25 years from the date of purchase or the sale of the property
The incentive will be structured as a second ranking mortgage, which will be registered immediately following the first insured mortgage
The incentive is not interest-bearing, with no regular principal payment and is repayable in full at any time without a pre-payment penalty
If you have any questions at all about this information, please feel free to contact us at any time!