First-Time Home Buyers Can Apply for Incentive Program In 5 Days

Wednesday Aug 28th, 2019

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The Federal government's incentive for first-time homebuyers will accept applications starting next Monday, Sept. 2, 2019.
 
This incentive aims to help first-time homebuyers without adding to their financial burdens. There are no additional monthly payments. Participants must meet minimum insured mortgage down payment requirements.

The incentive is available to first-time homebuyers with qualified annual incomes of $120,000 or less. A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual household income.

 
With this incentive, Government of Canada provides:

5% or 10% for a first-time buyer’s purchase of a newly constructed home
5% for a first-time buyer’s purchase of a resale (existing) home
5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home
 
How much can you save?
 
 
 
How is repayment calculated?

Using the incentive means that the government will share in both upside and downside changes in the property’s value.

If a homebuyer receives a 5% Incentive, the homebuyer will repay 5% of the home’s value at repayment.
If a homebuyer receives a 10% Incentive, the homebuyer will repay 10% of the home’s value at repayment.

The first-time homebuyer will be required to repay the Incentive amount after 25 years or when the property is sold, whichever comes first. The homebuyer can also repay the Incentive in full at any time, without a pre-payment penalty. 
 

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