First-Time Home Buyer's Toolkit
Are you in the market for your very first home? As of September 3, 2019, first-time buyers have some additional financial options in their planning toolkit.
Buying a home is likely the largest financial transaction you will ever undertake, so you’ll be happy to know that there are tools available to help you.
The First-Time Home Buyer Incentive helps qualified home buyers in British Columbia reduce their monthly mortgage carrying costs without adding to their financial burdens, helping make home ownership more affordable (WOOHOO!).
There are quite a few highlights and perks to this incentive, so read on and feel the financial stress of first-time home buying lift off those tired shoulders.
The First-Time Home Buyer Incentive allows eligible first-time home buyers, who have the minimum down payment for an insured mortgage, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.
An incentive amount of 5 percent is available for the purchase of an existing home. For the purchase of a newly constructed home, 5 or 10 percent is available to qualified buyers. The larger incentive is intended to help encourage the home construction needed to address some of the housing supply shortages in Canada, particularly in our largest cities.
Not only does the incentive help you with the initial down payment, but it also enables first-time home buyers to reduce their monthly mortgage payment, without increasing the amount that they must save for a down payment.
Best of all – there are no on-going repayments required. The incentive is not interest bearing, and homeowners can repay it at any time without a pre-payment penalty.
It may not be a condo in Yaletown or a house in North Vancouver, but there are options in the metropolitan areas that could qualify for this program. In fact, around 10% of transactions in Vancouver are for homes under $500,000, and based on last year’s activity — more than 1,000 home buyers in Vancouver would have been eligible for the First-Time Home Buyer Incentive. A very helpful boost when starting a new home.
Ready to buy your first home?
Make the move and sit down with a Mortgage Specialist today.