With the beginning of September quickly approching (which is personally my favourite month because it is the start of crisp, autumn weather, warm vanilla lattes and my birthday), the Canadian government is also introducing the First-Time Home Buyer Incentive. It helps qualified first-time homebuyers reduce their mortgage, which in turn reduces their monthly mortgage payments and the amount of interest they have to pay on their mortgage. Many first-time homebuyers have asked me on this Incentive in the past few months.
What exactly is the First-Time Home Buyer Incentive? It is an interest-free loan on 5% of the purchase price (of a resale home). For example: if you are purchasing a $500,000, you will receive a $25,000 loan. You will not have to pay interest on this loan for 25 years. That means, you are reducing your mortgage amount by $25,000 - that's pretty awesome, if you ask me!
Who is qualified for the First-Time Home Buyer Incentive? It is available to first-time homebuyers whose annual incomes (combined) is $120,000 or less. Additionally, the first-time homebuyers' mortgage and incentive amount cannot exceed four times than their annual (combined) income.
For more information on the First-Time Home Buyer Incentive, send me a message or give me a call and I would be more than happy to connect you with a mortgage professional to get you started.