The First-Time Home Buyer Incentive Cheat Sheet
All outlined details are accurate as of September 2nd, 2019:
- Available across Canada starting September 2nd, 2019 until March 31st, 2024 -OR- when the 1.25 billion dollars allocated for this program has been depleted.
- “The Incentive” is a Shared Equity Mortgage Loan.
- The Government of Canada will share in the upside and downside of the property value upon repayment.
- Canadian citizens, permanent residents, and non-permanent residents may apply.
- The property must be in Canada, available for full-time occupancy, with 1-4 units.
- Applicants must have a total household income less than $120,000 to qualify.
- Your total borrowing limit is up to four times the qualifying limit ($480,000)
- Your down payment + incentive is less than 20% of the property value.
- At least one applicant must be a first-time homebuyer, defined as the following:
- Never purchased a home before
- You recently experienced a breakdown of marriage or common-law
- You have not occupied your “family home” in the last four years
- “The incentive” is a second mortgage on title. There is no principal payment, no interest, and it has a maximum term of 25 years.
- It may be switched to a different financial institution without having to repay “the incentive”.
- No prepayment penalties. Repayment can be made on the sale of the property, at the end of the 25 year term, or at any time through voluntary repayment of the full incentive amount (no partial payments).
If you have additional questions, please contact your trust mortgage expert. For assistance in procuring your home, please contact Tanya LaRose at 306-380-7325 to begin the home buying process.