WHAT IS THE FIRST TIME HOME BUYER INCENTIVE?
By: Pouya Ghomi
If you’re having a hard time buying a new house in Vancouver, the new first time homebuyer program may just be what you need to get you started!
The new proposal in the Federal budget 2019 is aimed to help middle-income Canadians reach their goal of owning their first house.
Under this new program the Canada Mortgage and Housing Corporation would use up to $1.25 billion over the course of three years to help eligible candidates.
So how does this new program work?
Let me give you a simple example, imagine you want to buy a $500,000 home with a 5% downpayment, which would be $25,000. With the new incentive you could receive up to $50,000 through the CMHC; so rather than takeoff our a mortgage of $475,000 you would only need to borrow $425,000.
So what does this mean for you as a buyer?
This means that your monthly payment would be lowered by from roughly $2250 to almost $2000. That $250 less payment each month.
Who qualifies?
The incentive would be 10% for buying a newly built home and 5% for existing homes. Only households with an annual income of $120,000 or lower would qualify to apply for this incentive.
Contact me for more info.
If you’re looking for more information or would like assistance in your home purchasing journey, please contact me today.
Contact Pouya