8 July 2019

“These measures will cut the monthly mortgage payments by up to $286 and help an estimated 100,000 families across the country.”

The First Time Home Buyer Incentive will provide 5% for the purchase of an existing home, and 5%-7% in case of a new home buying.

There are no extra repayments or interest rates for that share. The borrower can pay off the incentive at any time with no pre-payment penalties charged.

The government shares all changes in the property’s value (increase or decline).

The buyer is obliged to repay the incentive 25 years after the purchase or when the home is sold.

The incentive will be offered to first-time homebuyers whose qualified annual household income doesn’t exceed $120,000. In addition to it, a borrower’s insured mortgage and the incentive amount can’t be larger than four times the buyer’s annual household income.

As the table below shows, for a family purchasing a new $500,000 home, the plan can save about $286 per month or more than $3,430 a year (remember, that real numbers will differ depending on mortgage terms and rates).

For a more detailed information about CMHC incentive for first time buyers, MortgageLegko.com team will be hosting free Summer BBQ on July 14th and doing presentations about new exiting program for first-time buyers and ways to free up equity for more experienced and older homeowners. Please register here to get your free ticket!