ZENY  MANINANG

ZENY MANINANG

Sales Representative

HomeLife/Bayview Realty Inc., Brokerage*

Mobile:
(905) 889-2200
Office:
905-889-2200
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First Time Home Buyer Incentive

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The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens.

The First-Time Home Buyer Incentive is a shared-equity mortgage with the Government of Canada. It offers:

  • 5% or 10% for a first-time buyer’s purchase of a newly constructed home
  • 5% for a first-time buyer’s purchase of a resale (existing) home
  • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home

The Incentive’s shared-equity mortgage is one where the government has a shared investment in the home. As a result, the government shares in both the upside and downside of the property value.

By obtaining the Incentive, the borrower may not have to save as much of a down payment to be able to afford the payments associated with the mortgage. The effect of the larger down payment is a smaller mortgage, and, ultimately, lower monthly costs.

The homebuyer will have to repay the Incentive based on the property’s fair market value at the time of repayment. If a homebuyer received a 5% Incentive, they would repay 5% of the home’s value at repayment. If a homebuyer received a 10% Incentive, they would repay 10% of the home’s value at repayment.

The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first. The homebuyer can also repay the Incentive in full any time before, without a pre-payment penalty.

LEARN MORE ABOUT THE FIRST-TIME HOME BUYER INCENTIVE

 


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RELATED TOPICS:

Listing your home

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Tips in selling your home or condo quicker

Glossary - Words or terms used in real estate transactions

Government Programs for Home Buyers

RRSP Home Buyers Plan

CMHC Purchase Plus Improvements

First Time Home Buyer Incentive

HST New Housing Rebate

Ontario Land Transfer Tax Rebate

Toronto Land Transfer Tax Rebate

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