First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive makes it easier for you to buy a home and lower your monthly mortgage payments. The First-Time Home Buyer program is a shared equity mortgage. A shared equity mortgage is a mortgage that the government shares with you. It allows you to borrow 5 or 10% of the purchase price of a home. You pay back the same percentage of the value of your home when you sell it or within a 25-year window.

It works like this:

• You receive a 5% incentive of the home’s purchase price of $200,000, or $10,000. If your home value increases to $300,000 your payback would be 5% of the current value or $15,000.

• You receive a 10% incentive of the home’s purchase price of $200,000, or $20,000 and your home value decreases to $150,000, your repayment value will be 10% of the current value or $15,000.

Just as the name implies, this incentive is for first-time homebuyers. You’re considered a first-time homebuyer if:

• You have never purchased a home before

• You did not occupy a home that you or your current spouse or common-law partner owned in the last 4 years (the 4-year period begins on January 1 of the fourth year before the Incentive is funded and ends 31 days before the date the Incentive is funded)

• You have recently experienced the breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements)

  Speak with Frank for more information and steps on how to qualify, he will be more than happy to help walk you through this process.