CMHC First time Home buyer Incentive Program Update!
If you are looking to buy your first home and are waiting until September for when this program is set to be implemented you may want to call us to discuss. As a first time home buyer you may be surprised at how this program really works.
How does it work?
The government plans to provide first time home buyers with 5% contribution to the purchase of an existing home. They will provide 5-10% contribution to a new home build. It is only available to a first time home buyer. The home buyers household income must be no more than $120000 to be eligible. The incentive plus mortgage amount can not be greater than 4 times the applicants income.
Important information
There are a few surprises in this program such as how you have to pay back the loans because yes, it is a loan and must be repaid. It has been confirmed that participants have to repay CMHC the 5% or 10% contribution within 25 years or when the house is sold and it can repaid before that with no prepayment penalty
in all cases, the incentive amount would have to be paid back at current fair market valuation, which would be determined by CMHC using an independent appraisal.
You can read more about this new program here.
So bottom line, read the small print. We specialise in First time Home buyers. Find out more by following this link. Give us a call to discuss further!
