How This New Government Incentive Could Benefit First Time Homebuyers
With rising interest rates and home prices, the affordability of houses has worsened and made it even more difficult for homebuyers to enter the real estate market. If you are a first-time homebuyer, you know the only way to lower your financial burden is by being updated with the latest changes in the real estate industry, new mortgage policies, and Government announcements.
One program recently announced by the Government of Canada that will positively impact the lives of many first-time homebuyers is the introduction of the ‘First-Time Home Buyer Incentive,’ which will be administered by the Canada Mortgage and Housing Corporation (CMHC).
Under the ‘First-Time Home Buyer Incentive,’ borrowers will get up to ten percent down payment for newly built homes and five percent of the value of resale properties. Moreover, if you are a first-time home buyer with a family income of less than $120,000 per year, you may qualify for an additional ten percent down payment. It is also important to note that the amount of the insured mortgage plus the CMHC incentive would be capped at four times the home buyers’ annual incomes, or up to $480,000.
This new program will help first-time home buyers lower their overall monthly costs and will reduce their mortgage amount because of their assistance towards the down payment. However, eventually, home buyers will have to repay the CMHC loan and may even need to pay interest, but the details of the repayment terms haven’t been disclosed yet so it is unclear how that would work.
If you’re a first-time buyer but are unsure about whether you can afford a home, learn more about the ‘First-Time Home Buyer Incentive’ to increase your chances of owning a home or enlist the services of a mortgage professional to assist with your financing.
As a leading mortgage agent in Pickering, ON, Mortgages with Nicolle Williams is ideally placed to help you take advantage of this new incentive. At Mortgages with Nicolle Williams, we are passionate about assisting Canadian families with their homeownership goals. Our team of experienced mortgage brokers and agents will educate you about the mortgage world and provide you with solutions that can accommodate your budget and mortgage needs.
We provide a range of residential mortgage services including reverse mortgage, private mortgage, mortgage renewal, first-time homebuyer mortgages across Pickering, Ajax Oshawa, Bowmanville, Whitby, Scarborough, and Toronto. For a complete list of mortgage services that we offer, please click here. If you have any questions about the ‘First-Time Home Buyer Incentive’ or need more information about the program, get in touch with us by clicking here.