3 Things You Should Know About the New First-Time Home Buyer Incentive

By: Joshua Campbell

3 Things You Should Know About the New First-Time Home Buyer Incentive

Tags: Real Estate, renting, buying, selling, real estate tips, residential, rent, Ontario, tenant, moving, Newmarket, York Region, first time home buyers, knowledgebrkr,

2 minute read. 

Purchasing a home as a first-time homebuyer can be a challenge. With high housing prices and substantial down payments, homeownership can seem like an impossible goal. The First-Time Home Buyer Incentive program is designed to make purchasing a house more affordable for first-time buyers in Canada.
 
Here are a few things you should know about this new program. 

1. The Amount of Money You Receive Depends on The House 

The type of house you wish to purchase will affect the amount of money the federal government will allocate to you. For a resale property, you can receive up to 5% of the home’s purchase price. For a new construction property, you can receive up to 10% of the home’s purchase price.
 
2. You Will Have to Repay the Money

The incentive is not free money. You will have to repay the money you receive. Luckily, you do not have to make payments right away and there is no interest. According to the guidelines, you will have to repay the incentive after 25 years of living in the property or after selling it — whichever comes first.
 
Your repayment is based on the property’s market value. This means that if you receive 5% of the home’s purchase price, you would pay back 5% of the current market value of the home at the time of selling.

3. You Must Meet Certain Requirements to Apply
 
Not everyone can apply for this incentive. There are many eligibility requirements you must meet to receive approval. These include:
   
Additionally, you also must meet one of the following:
 

 
The First-Time Home Buyer Incentive makes owning a home more of a possibility for many Canadians. It will help reduce the monthly mortgage amount without putting borrowers in a difficult financial situation. The only question is, can you find an affordable home close enough to your business to make it work? If you have any further questions regarding the incentive, please reach out. I would happily go through the program with you in person.
 
Are you a first time home buyer ready to move to a homeowner? Click here to see how Knowledge Broker can help you start this incredible journey. 

At Knowledge Broker, our goal is to create an open-source of information for all our clients. We want to ensure that, at the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below. 
 

JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
joshua@knowledgebroker.ca
249 Avenue Road • Newmarket, ON L3Y 1N8
289.231.0001

 

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