The Canadian Government’s First-Time Homebuyer Incentive Program
For qualified buyers, the Canadian government offers certain incentives to help make the process of buying a home simpler. More specifically, the First-Time homebuyer Incentive Program is a way to ensure you can afford your first purchase as soon as today.
What Is The First-Time Homebuyer Incentive Program?
Basically, this is a shared-equity mortgage with the Government of Canada. Think of it as the Canadian government making an incentive in you, as a buyer, in the purchase of your greatest asset: your new home.
It’s an opportunity to reduce the size of your monthly mortgage payments, while still affording you the opportunity to purchase a home anywhere in the GTA (and beyond).
Basically, the program offers:
- 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
The Canadian government’s investment in your home is a direct reflection of their investment in the overall housing market. By obtaining the incentive, you may be able to increase your money down – thereby pushing down the amount of the payments you make monthly.
How Do You Pay It Back?
The incentive is contingent upon paying back the Canadian government, based on the property’s fair market value, at the time of repayment. Basically, if you require a 5% incentive, you will need to pay back 5% of your home’s worth whenever that payment is due.
Essentially, you have 25 years to pay back your incentive (or when the property is sold, whichever comes first). You can also pay it back, anytime, before then (without penalty).
Is This Incentive Right For You?
Ask the experts to find out! We can help you understand if this incentive is the right move for your purchase, and if buying a home right now in Brampton, Caledon, Mississauga, or across the GTA is the wisest move for your future.
Please, use the form to reach out today. We’d love to help.