First Time Home Buyer Down Payment Incentive

The Government of Canada and CMHC released valuable information today regarding this new program for first time home buyers.  We have requested clarity on a few points but here is what we know so far!

Highlights of the First Time Home Buyer program are: 

  • Sep 2, 2019 Launch – First Closing Nov 1, 2019
  • The mortgage amount cannot exceed 4 x your household income.  The max household income that can qualify for this proram is $120K.  The maximum mortgage allowed under this program is therefore $480K.  If clients make a combined $75K, the maximum mortgage will equal $300K; if $100K income, the maximum mortgage will be $400K.
  • 5% down payment / shared equity available for re-sale properties
  • 5% or 10% down payment / shared equity available for new construction properties
  • You are eligible for this program if you are a Canadian citizen, permanent resident, or non-permanent resident who is legally authorized to work in Canada, and 1) at least one of the purchasers is a First Time Home Buyer, or  2) you have gone through a breakdown of a marriage or common-law partnership (even if you have owned prior).
  • This incentive is repayable after 25 years or when the property is sold (whichever is first), and you can pay it back at any time without a pre-payment penalty.
  • The incentive will have an equity-like payout, where the Government will share in the upside or downside of the property value upon repayment.

XEVA Mortgage and our many bank / credit union / non-bank + best-rate lender partners will be partaking in the program.

For more information, please see the announcement directly by clicking here.

Are you a potential first time home buyer? Please feel free to contact me with any questions you may have!  I am happy to complete a pre-approval for you and any of your clients looking to partake in this program.

Have a great day!

Patricia Collins
XEVA Mortgage