– Borrower must be Canadian Citizen, Permanent Resident or Non-Permanent Resident legally authorized to work in Canada.
– Minimum one borrower must be First Time Home Buyer
– Property owner occupied and located in Canada
– Must contribute minimum 5% down payment from own source or gifted traditional sources.
– First Time borrowers can now take $35,000 out of RRSP savings
– $120,000 maximum household income to qualify for FTHBI
– A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual income.
– You’ve never bought a home before, you are separated or divorced or during last 4 years you did not live in a property that you or current spouse/common law partner owned
Canadian Shared Equity Mortgage (SEM)
– 5% for the purchase of a resale property OR
– 5% or 10% for the purchase of a new construction home
– Government has a shared interest once they contribute down payment for the property purchase
– Program available through default insurers; Canada Mortgage Housing Corporation (CMHC), Genworth or Canada Guaranty. Premiums calculated based on the purchase price less borrower’s down payment and FTHBI incentive.
– Lowers default premium
– Interest-free loan towards their down payment – no monthly payment
– Can pay off loan at any time with appraisal. Amount based on fair market value determined at time of repayment.
– Strategies for paying off loan or not paying off loan? Depends if you are in an appreciating or depreciating market. On a hypothetical $400,000 loan, FTHBI saves you $123/month. Save it and you’ll have $36,000 after 25 years (not including interest),
Learn more frosted tips and dark web strategies in my Ebook, click HERE