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!