More News About the First Time Home Buyer Incentive.

Jean-Yves Duclos, the Minister responsible for CMHC, has announced that the First Time Home Buyer incentive program is set to be available from September 2, 2019. The incentive will allow eligible first-time homebuyers who have the minimum down payment for an insured mortgage with CMHC, Genworth or Canada Guaranty, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.

Incentive program details:

• The First Time Home Buyer Incentive will be 5% for the purchase of an existing home, while for the purchase of a newly constructed home, an incentive amount of 5% or 10% may be available.
• No on-going repayments are required, the incentive is not interest bearing, and the borrower can repay the incentive at any time without a pre-payment penalty.
• The government shares in the upside and downside of the change in the property value.
• The buyer must repay the incentive after 25 years, or if the property is sold.
• The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000.
• Participant's insured mortgage and the incentive amount cannot be greater than four times the participant's qualified annual household income.

Reference: https://www.canadianrealestatemagazine.ca/market-update/launch-date-and-other-info-about-first-time-home-buyer-incentive-276351.aspx?utm_source=Pinpointe&utm_medium=20190715&utm_campaign=CREW-Weekend&utm_content=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB&tu=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB