I am sure you have already heard about the new First Time Home Buyer Incentive Program that was introduced back in March on the Federal Budget, being rolled out by the CMHC (Canadian Mortgage and Housing Corp.). Well, earlier this week it was announced that on September. 2, 2019 this program will be officially be launched. Below are the key points of the program.

A Recap of the FTHBI First-Time Home Buyer Incentive

  • CMHC will contribute 5% of a down payment for the purchase of an existing home or 10% for the purchase of a new build
  • The mortgage must be default insured
  • The applicants’ household income must be less than $120,000
  • No monthly payments are required, and this amount can be paid back at any time, or upon the sale of the house
  • CMHC shares in both the proportionate gains or losses in home value
  • The insured mortgage plus incentive cannot be more than four times the participants’ household income (roughly a $565,000 maximum purchase price for someone making a 15% down payment)
  • The program will be available to buyers on September 2, 2019
  • The government anticipates 100,000 first-time buyers will take advantage of the program over the next three years at a cost of $1.25 billion.

Experts foresee this program being most utilized in smaller urban centres due to the sheer cost of Housing in Canada’s two hottest and most controversial Real Estate Markets, Vancouver and Toronto. There is also speculation as to how long this program will last being that this is a Federal Election Year. So my advice would be if you are personally interested in seeing if you will qualify for the program get in touch today as it might not be around for long.

Author: Debora Seehuber- Mann

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