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First Time Home Buyers

Each year thousands of Canadians break into the housing market and each year thousands try but are not successful. In many ways, the role of a REALTOR® is to help create a road map to homeownership and in doing so giving you the resources that best fit YOUR situation. 

In the video below, I will introduce you to The First Time Home Buyer Program and walk you through my process when working with a new client and first-time home buyers. 


 
 
 

First Time Home Buyers CMHC Incentive!

What you need to know: this program is for first time home buyers to help give them a lift in their purchasing power.

Who is considered a first-time buyer?

  • You have never purchased or owned a home before
  • You haven’t occupied a home you or a spouse has owned in the last 4 years
  • NEW: if you are just out of separation or divorce

What do I need to qualify for the incentive program?

  • You need your own 5% down payment (Saved Funds, RRSP or Gifted Funds)
  • NEW: RRSP withdrawal has been increased to allow up to 35k to be withdrawn total
  • A maximum annual household income of $120,000.00
  • Maximum loan amount is 4X the qualifying income based on stress tested rules.

How does the program work?

  • Buyers can receive an addition 5% on a purchase of a Re-sale home
  • Buyers can receive up to an additional 5% or 10% on a New Build Home with new home warranty


How do I pay it back?

Incentive payback will be based on the percentage of funds granted upfront and is based on equity gained or lost in the home when paid back at either of the 3 scenarios below. It is an interest free loan.

  1. You sell your home
  2. At the 25 year completion of payments
  3. Any point in a 25 year timeline

*Repayment at any time will not incur any pre-payment privileges

* Equity Gained/Lost will be based on a fair market appraisal completed by CMHC

* Monies granted by CMHC will be registered on land titles at closing

Example if the property value decreases:

Buy new home at 350k – (10% of value) 35k granted at purchase towards down payment

Sell your home down the road for 320k – (10% of value) 32k payback to CMHC


Example if the property value increases:

Buy off MLS for 300k – (5% of value) 15k granted at purchase towards the down payment

Sell down the road for 320k – (5% of value) 16k payback to CMHC

 
Here is an example of how the First Time Home Buyer program can make a difference on your monthly payments:
                       Thank you to Cheryl Wilkes and Kelsey Vankosky for their help in creating this post.



Links to check out:
CMHC First Time Home Buyer

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