First-Time Home Buyers Incentives: How It’ll Shape The Future of Canadians

First-Time Home Buyers Incentives: How It’ll Shape The Future of Canadians

Purchasing a home is always a dream come true, especially if it’s the first home for a family. The house will pave the way for countless memories to come; it’s something that can’t be expressed in words.

Purchasing a home is always a dream come true, especially if it’s the first home for a family. The house will pave the way for countless memories to come; it’s something that can’t be expressed in words.

To help facilitate families buying their first homes, a new incentive was just proposed under the Budget 2019! The proposed Canada Mortgage and Housing Corporation (CMHC) first-time home buyers incentive is a shared equity mortgage that would enable eligible first-time home buyers to lower their borrowing costs from banks by sharing the cost of purchasing a home from the CMHC.

Under the proposed First-Time Home Buyers Incentives, Canadians will receive a funding of anywhere between 5-10% of the home, mainly depending on a certain factors.

Eligibility For The Incentive

To be eligible for the incentives, you must meet some certain criteria. These are:

  • You must be a first time home buyer
  • You must have an annual household income of less than $120,000
  • The insured mortgage added to the incentive can’t exceed 4 times the household income
  • You must make the minimum down payment for an insured mortgage

For this to work, you don’t need to pay regular repayments. Moreover, you won’t need to provide details of ultimate repayment; but this was noted as an example in the Government documents.

The Benefits

So, claiming the First-Time Home Buyers Incentives will not only encourage first time home buying, but will also pave the way into more people being able to afford their first homes. In essence to that, the funding of 5 to 10% on the home price may seem a very little amount when considering the total price of the house, but it still benefits the family that’s going to buy the home.

Moreover, the ease of access to the fund and very little requirement of paperwork makes it very easy to get the fund for first-time home buyers.

The Bottom Line

When you’re applying for the First-Time Home Buyer’s Incentives, the eligibility criteria might seem a lot to handle. The fact that you can’t buy a house that exceeds 4 times your annual income, requirements of the minimum down payments and an annual income of less than $120,000 might mean that you have very little choices.

On the flip side, you get a partial payment for your home buying and you can get incentivized for your first home directly from the government. Along with that the Canada Mortgage and Housing Corporation (CMHC) first-time home buyers incentive would enable eligible first-time home buyers to lower their borrowing costs from banks by sharing the cost of purchasing a home from the CMHC.

Overall, the First-Time Home Buyer’s Incentives will surely help Canadians purchase their first homes! So, why the wait?

To help facilitate families buying their first homes, a new incentive was just proposed under the Budget 2019! The proposed Canada Mortgage and Housing Corporation (CMHC) first-time home buyers incentive is a shared equity mortgage that would enable eligible first-time home buyers to lower their borrowing costs from banks by sharing the cost of purchasing a home from the CMHC.