Hi I’m Steven Crews with mymortgagebroker.com and Paragon mortgages today I wanted to provide a quick review of
the first-time homebuyers incentive program that’s available in Canada
before I start if you want to get more information about mortgage financing in
Canada make sure you press the subscribe button below and if you like the
information in this video please smash that like button in this short video I’m
going to cover the following topics what is the first time homebuyer
incentive how do you qualify for the incentive what factors determine whether
I receive the 5 percent or 10 percent incentive how do I pay back the money
how do I calculate how much I have to pay back let’s start with what is the
first-time homebuyers incentive the first-time homebuyers incentive program
is a government shared equity program run through CMHC where you receive money in the amount of 5% or 10% of the purchase price the money you receive is
given with no interest to pay it’s set up as a 25-year term and repayment is
required when you sell or at the end of the 25-year term whichever comes first
how do you qualify for the incentive there are five main requirements to
qualify one you must be a first-time home-buyer to your qualifying income must be a hundred and twenty thousand dollars per year or less 3 the maximum mortgage
amount is no greater than four times your qualifying income and four you must
come up with 5% down from your own resources or a gift
I created a calculator that will help you to figure out how much you qualify
for visit mymortgagebroker.com slash incentive to find
the calculator what factor determines whether I receive a 5% or 10% incentive
to receive 10% incentive you must purchase a new construction home or
condo if you purchase a resale home or a resale condo
you will only qualify and receive 5% incentive you can also receive a 5%
incentive for the purchase of a new or used mobile home or modular home how do you pay the money back you must pay the money back if you sell your home the
incentive has a 25 year term and will be due in full at the end of 25th year you
live in your home if you haven’t sold your home already
how do I calculate how much I have to pay back when you pay back the money you
would multiply the incentive you received either 5 percent or 10 percent
by the market value or sale price of your home let’s take a look at a couple
of examples let’s say you bought your home for $400,000 and received a $20,000 incentive this is 5 percent of your purchase price and let’s compare 3
examples of selling your home 1 if you sold for 400,000 then you would pay back
5% of that price or 20,000 2 if you sold your home for 2 450,000 then you would
pay back 5 percent of that amount or 22,500 3 if you sold your home for
350,000 then you would pay back 17,500 in summary there are several benefits to
the first-time home buyers who qualify for this incentive if you qualify I
would recommend that you take advantage of it
at the very least you would have a lower mortgage payment than if you didn’t take
advantage of the program

Do You Qualify for the First Time Home Buyer Incentive, in Canada?

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