Good News For First Time Home Buyers
Sunday Mar 31st, 2019Share
While the complete details won’t be released until the fall, the proposed 2019 federal budget does include some relief for prospective first-time home buyers. More specifically, the budget aims to offer a program, known as the First Time Home Buyer Incentive, designed to help with housing affordability.
In simple terms, the option would function like an almost interest-free loan, with repayment not starting until several years in the future. In order to qualify, applicants need to have a household income of less than $120,000 per year, but will still need to be able to come up with a five per cent down payment, which is the minimum requirement for an insured mortgage with the Canada Mortgage and Housing Corporation (CMHC).
If you do qualify, know that the program does come with limits. With a max out of four times the applicant's annual income, the program will only help homeowners looking to buy properties where the mortgage value plus the CMHC loan doesn’t exceed $505,000. Once the conditions are met, the CMHC would contribute up to 10 per cent of the value of a newly built home, or five per cent of the value of a resale.
Relief For New Home Buyers At A Glance
As mentioned, we’ll have to wait until the later part of this year for complete specifics, but here are some of the key points first time home buyers should be aware of if they plan on taking advantage of the program.
- This program is not a replacement for a down payment, but a payment free loan on top of the down payment that buyers are required to have.
- CMHC would take an equity stake in the buyer’s home for the amount contributed.
- Loan is paid back upon sale of the home, or sooner if the buyer wishes.
- Payback begins at year three, with years one and two given as a grace period.
Find The Right Oakville Realtor To Help You Buy Your First Home
Buying your first home is incredibly exciting, but it’s also very overwhelming. Finding an experienced realtor that can guide you through the process and offer knowledge and support will go a long way in reducing stress and making things much more enjoyable. Sue Heddle Homes has more than 10 years of experience as a Burlington, Milton, Mississauga and Oakville realtor and takes great pride in making sure her client’s needs are met. With a deep commitment to focusing on the client experience, know that you can count on Sue to help you find the right home for your needs. Ready to get started? Contact or call Sue Heddle today at (416) 906-7998.