The First-time Home Buyer Incentive - first time home buyer incentive

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• (1) incentives for first time buyers
• (2) first time homebuyers incentives
• (3) first time home buyer deals
• (4) first time home buyer what to know

https://www.cmhc-schl.gc.ca/en
June 1, 2022
The First-time Home Buyer Incentive
A new program helps to make homeownership more affordable.
The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their
monthly mortgage payments without adding to their financial burdens.
The First-Time Home Buyer Incentive is a shared-equity mortgage with the Government
of Canada, which offers:
? 5% or 10% for a first-time buyer's purchase of a newly constructed home
? 5% for a first-time buyer's purchase of a resale (existing) home
? 5% for a first-time buyer's purchase of a new or resale mobile/manufactured
home
The shared equity component of the incentive means that the government shares in
both the upside and downside of the property value, up to a maximum gain or loss equal
to 8% per annum (not compounded) on the Incentive amount from the date of advance
to the time of repayment.
By obtaining the Incentive, the borrower may not have to save as much of a down
payment to be able to afford the payments associated with the mortgage.The effect of
the larger down payment is a smaller mortgage, and, ultimately, lower monthly costs.
The homebuyer will have to repay the Incentive based on the market value of the home
at the time of repayment equal to the percentage (for example, 5% or 10%) of the
original home value used to determine the Incentive, up to a maximum repayment
amount equal to:
(i) where the home's value has appreciated, the Incentive plus a maximum gain
of 8% per annum (not compounded) on the Incentive amount from the date of advance
to the time of repayment; or
(ii) where the home's value has depreciated, the Incentive minus a maximum loss
of 8% per annum (not compounded) on the Incentive amount from the date of advance
to the time of repayment.
The homebuyer must repay the Incentive after 25 years, or when the property is sold,
whichever comes first. The homebuyer can also repay the Incentive in full any time
before, without a pre-payment penalty.
Looking for homebuying tools and resources?
Knowing what to expect throughout the entire homebuying process can lead to more
well-informed decisions, and a better homebuying experience overall.
Check out all of CMHC's homebuying tools and resources to help you make your
homebuying decisions with confidence.
Guides
? Homebuying Step by Step Guide and Workbook - Find everything you need to
help you buy a home in Canada, including worksheets, calculators and
checklists.
? Condominium Buyer's Guide - Get detailed information on buying a
condominium.
? Newcomers' Buying Guides - Read homebuying information in 8 different
languages!
Calculators
? Affordability Calculator - Estimate how much mortgage you can afford.
? Debt Service Calculator - Compare monthly debt payments and expenses to
income.
? Mortgage Calculator - Explore rates, payment frequency, amortization options
and more.
Other useful information
? Your Credit Report - Learn more about the simple steps you can take to
maintain a good credit history and improve your chances of being approved
for a mortgage.
? Mortgage Planning Tips - See how planning your mortgage in advance can
help you save money in the long run.
? Mortgage Fraud - Read these valuable insights that can help protect you from
mortgage fraud.


What advice would you give to first-time home buyers? 13 Tips For First-Time Home Buyers Be Sure You're Ready To Commit To A Loan. The No. ... Don't Skip The Preapproval. It can be tempting to jump right into hunting for the perfect house, particularly if this is your first time. Maintain Your Credit. ... Save For A Down Payment. ... Understand Your Loan Options. ... Don't Forget Closing Costs. ... List Your Needs, Your Non-Negotiables And Nice-To-Haves. ... More items...

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