First Time Home Buyers Incentive (FTHBI) Program coming Sept. 2019
Thursday Apr 25th, 2019
First Time Home Buyers Incentive (FTHBI) Program coming Sept. 2019
2019 Federal Budget announced a ‘shared equity’ program, for First Time Home Buyers, unlike any other we’ve known before in Canada.
The program is available for the next 3 years, effective September 2019 and is designed for household incomes under $120,000 per year . The details of the ‘shared’ equity program haven’t been made known by CMHC yet but the following has been released:
- Buyers required to have minimum down payment between 5% but less than 20% of value of home.
- CMHC will contribute 10% of value of home towards a ‘shared equity mortgage’ for NEWLY built homes and 5% for EXISTING homes.
- The maximum price of a home to qualify under this program according to CMHC is $505,000, since the buyers mortgage and the incentive program cannot be more than 4 times the buyers house hold income.
Below is an example of the remaining mortgage for a new home and a resale home under this program at the maximum qualifying price of $505,000.
| First Time Home Buyers | New Home | Existing Home |
|---|---|---|
| Price of Home | $505,000.00 | $505,000.00 |
| 5% Minimum down payment | -$25,250.00 | -$25,250.00 |
| Mortgage before incentive | $479,750.00 | $479,750.00 |
|
CMHC Incentive If NEWLY built 10% If RESALE home 5% |
-$50,500.00 |
-$25,250.00 |
| Mortgage after incentive | $429,250.00 | $454,500.00 |
The Durham Region https://www.durham.ca/en/discovering-durham/about-durham-region.aspx is one of the more affordable areas in the GTA. As of April 20, 2019 there approximately 249 properties listed on MLS under $505K, ranging from detached homes, semis and townhomes that would qualify under this program. If you are looking for a great area to raise your family, call me and I’ll be glad to help you find the best home that suits your families’ needs while benefiting from this new program.
Daniela Tandory
Sales Representative
Right At Home Realty Inc. Brokerage
Direct: 905-244-3333
Office: 905-665-2500
Post a comment