New information released regarding first-time home buyer incentive

Key details regarding the first-time home buyer incentive, launching September 2nd, have been released.  Under this program the government will offer assistance to first-time buyers in the form of an interest-free loan.  They will give up to 5% of the purchase price of an existing property or up to 10% on a new build.  This helps first-time buyers by reducing their mortgage amount and in turn, their monthly payments. Here are some of the key details that were just released:

  • the loan must be repaid after 25 years or if the home is sold
  • if the home value goes up, the government will get a percentage
  • if the home value goes down, the government will share a percentage of the loss
  • household income must be below $120,000 per year
  • amount of insured mortgage plus insurance premium is capped at 4 times the buyers annual incomes, or up to $480,000
  • maximum home value would be between $500,000 and $600,0000
  • the government has allocated $1.25 billion over 3 years for the first-time home buyer incentive

Have more questions?  Contact your local mortgage broker at The Mortgage Centre KW

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