First Time Home buyer Incentive Program

First-Time Homebuyer Incentive Program

01.17.2023 | Articles For Homebuyers

Unlock the Benefits of the First-Time Homebuyer Incentive Program

Have you ever imagined the Government of Canada investing in your dream home? Well, it’s possible with the First-Time Homebuyer Incentive Program. This program offers you the chance to reduce your monthly mortgage payments while investing in real estate in Brampton, Mississauga, Caledon, or even beyond.

What Does the Program Offer?

  • For new homes: The program grants you 5% or 10% towards your purchase.
  • For resale homes: You’ll receive a 5% incentive.
  • For mobile/manufactured homes: Yes, you can get a 5% incentive here too.

So, Why Should You Care?
By enrolling in this program, you’re not only making your monthly payments more manageable but also contributing positively to the broader housing market.

Who’s Eligible for This Program?

Before diving into home shopping, let’s ensure you meet the eligibility criteria.

Eligibility Checklist

  • Down Payment: Accumulate the minimum required down payment through savings, RRSPs, or gifts from family.
  • Status: You can be a Canadian citizen, permanent resident, or a non-permanent resident who has work authorization in Canada.
  • Income: Keep your annual income under $120,000.
  • Mortgage: Your mortgage shouldn’t exceed four times your annual income.

Note: You can’t use your new property as an investment home.

How Does Repayment Work?

While the government does offer an incentive, they expect you to repay it eventually.

A Real-world Example

Consider Jennifer’s case. She bought a resale home for $490,000, chipping in a 5% down payment. She took advantage of the First-Time Homebuyer Program, which eased her monthly payments. Five years later, she sold the house for $620,000. At this point, she had to repay 5% of that amount, totalling $31,000.

The Repayment Guidelines

  • You get up to 25 years to repay or upon selling your property—whichever comes first.
  • No penalties for early repayment.
  • If you change the property’s use or wish to buy another property, you must repay the incentive.

Is This the Right Choice for You?

If you’re still uncertain, you don’t have to go through it alone. Keith and Françoise Real Estate Team are here to guide you through this financial journey. We specialize in assisting first-time buyers in Brampton, Caledon, Mississauga, and the GTA.

Get Started Today!

To kickstart your dream of homeownership, simply fill out the form below. We can’t wait to help you out!


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