First Time Home Buyer Incentive – Michal and Michael Podcast

Michal Sluka – Premier Canadian Properties, real estate agent for over 5 years, sold over 300 homes

Michael Huber – Huber Mortgage, 7 years experience

View Full Podcast  – CLICK HERE

**Podcast Point Form Summary Below**

First Time Home Buyer Incentive Program (FTHBI)

– Effective September 2, 2019

– Deals must close on or after November 1, 2019

Eligibility

– 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.

– Loans lowers mortgage amount

– Government owns 5% share in up and downside, watch Podcast for examples

– 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

Sincerely,

Michael