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Vanessa Willett

Easier to buy your new home!

This is HUGE! Canada is soon going to make it a little easier for first time home buyers. Say goodbye to heartbreak, because this new incentive is set to start in September 2019. According to the articles we've read, if youā€™re hoping to buy a $400,000 home, usually the minimum required 5% down payment works out to be $20,000. With the new incentive, you could receive up to $40,000 through the CMHC. This means, instead of taking out a $380,000 mortgage, youā€™d only need to borrow $340,000. This would lower your monthly mortgage bill from over $1,970 to less than $1,750.

What are the terms of repayment?ā€ÆSo according to the CMHC's website

"The first-time homebuyer will be required to repay the Incentive amount after 25 years or when the property is sold, whichever comes first.

The homebuyer can also repay the Incentive in full at any time, without a pre-payment penalty.ā€ÆRefinancing of the first mortgage will not trigger repayment.

How is repayment calculated?
  • If a homebuyer receives a 5%, the homebuyer will repay 5% of the homeā€™s value at repayment.

  • If a homebuyer receives a 10% Incentive, the homebuyer will repay 10% of the homeā€™s value at repayment.

Repayment is based on the propertyā€™s fair market value at the point in time where repayment is required."

As per the information we've received, you're considered a first-time homebuyer if you meet one of following qualifications:

  • You've never purchased a home before

  • Youā€™ve recently experienced a breakdown of a marriage or common-law partnership

  • In the last 4 years you did not occupy a home that you or you current spouse or common-law partner owned

If you like a more personal approach, we have some great finance reps that can meet with you, and guid you in the process.

So all in all this is great news, especially with land prices skyrocketing. In most areas, the land costs the same price as the home, if not more! These crazy land prices don't help when it comes to lowering the costs of your new home. We're glad to see that finally, new home buyers are going to have some help on their side.

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