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The First-Time Home Buyer Incentive is an initiative introduced by the Government of Canada to support eligible first-time homebuyers in reducing their monthly mortgage expenses. The program operates as a shared-equity mortgage where the government holds a shared investment in the home.
This incentive offers different levels of assistance depending on the type of home being purchased. For instance, first-time buyers of a newly constructed home can receive 5% or 10% support, while those purchasing a resale (existing) home can receive 5% support. Similarly, those purchasing a new or resale mobile/manufactured home can also receive 5% support. With this shared-equity mortgage, homebuyers are able to afford a mortgage with a lower down payment, resulting in a smaller mortgage and lower monthly costs.
The First-Time Home Buyer Incentive requires repayment based on the property's fair market value at the time of repayment. For instance, if a homebuyer received a 5% incentive, they would repay 5% of the home's value at the time of repayment. Similarly, if a homebuyer received a 10% incentive, they would repay 10% of the home's value at the time of repayment. The repayment is due after 25 years or when the property is sold, whichever occurs first. Homebuyers may also choose to repay the incentive in full at any time prior to the due date, without incurring any prepayment penalties.
For further information on the First-Time Home Buyer Incentive and other home buying resources, please visit the Canada Mortgage and Housing Corporation (CMHC) website. The website offers a range of resources, including a step-by-step homebuying guide, workbook, calculators, and information in multiple languages, to help homebuyers make informed decisions and have a successful home buying experience.
Learning more about the First-Time Home Buyer Incentive - www.placetocallhome.ca
Having a thorough understanding of the homebuying process can lead to more informed decisions and a smoother overall experience. Discover the full range of resources offered by CMHC to assist you in making confident homebuying decisions.
Homebuying Step by Step Homebuying Guide and Workbook - Get comprehensive information on buying a home in Canada, including worksheets, calculators, and checklists.
Condominium Buyer's Guide - Acquire in-depth knowledge on purchasing a condominium.
Newcomer's Buying Guides - Access homebuying information in 8 different languages!
Affordability Calculator - Determine how much mortgage you can afford.
Debt Service Calculator - Assess the ratio of monthly debt payments and expenses to income.
Mortgage Calculator - Evaluate rates, payment frequency, amortization options, and more.
Additional Resources Your Credit Report - Learn how to maintain a good credit history and increase your chances of mortgage approval.
Mortgage Planning Tips - Discover how planning your mortgage in advance can result in long-term savings. Mortgage Fraud Awareness - Be aware of potential mortgage fraud and protect yourself with valuable insights.
I make challenging process of first-time home buying as easy as water falling into a river
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