With many homebuyers across Canada struggling to find affordable housing, the federal government is planning to ease that struggle with a new program called the First Time Home Buyers’ Incentive.
Starting September 2, 2019, the program will provide first-time buyers with interest-free mortgage loans of up to 10 per cent for new builds and 5 per cent for existing housing stock.
This will be done through the Canada Mortgage and Housing Corporation (CMHC).
According to Ralph Goodale, Minister of Public Safety & Emergency Preparedness, the program aims to provide real help for young Canadians and middle class families looking for a safe and affordable home.
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The program will reportedly save first-time homebuyers up to $286 a month on their mortgage payments.
For example, if you wanted to buy a new home for $400,000, you could apply to receive $40,000 in a shared equity mortgage (10% of the cost of a new home) from the federal government, lowering your monthly expenses and the amount you need to borrow.
In that case, your mortgage would be $228 less a month (or $2,736 a year).
Our government’s new First-Time Home Buyer Incentive will be available starting September 2nd – providing a real help for young Canadians and middle class families who want a safe and affordable place that they can be proud to call home. pic.twitter.com/gnrdOXS1nj
— Ralph Goodale (@RalphGoodale) June 17, 2019
More information about the incentive is available here.
Are you planning to take advantage of this new incentive?