First time buyer incentive announced
Tuesday Jun 18th, 2019
The Government of Canada has recently announced the new First-Time Home Buyer Incentive. This incentive helps qualified first-time homebuyers reduce their monthly mortgage carrying costs without adding to their financial burdens.
You will still need to have a minimum downpayment. But then you can apply for a 5% or 10% shared equity mortgage with the Government of Canada. This will effectively lower your monthly mortgage payments. Your maximum qualifying income is no more than $120,000 and your total borrowing is limited to 4 times the qualifying income.
The Incentive has an equity-like payout, where the government would share in the upside and downside of the property value. So when you sell your home, and you make a profit, the government shares in the profit. For more information check here.