Despite popular misconception, no, the government is not paying for your down payment. The First Time Home Buyer Incentive Program is simply designed to lower mortgage payments for first time home buyers by providing them with an equity shared interest and payment free mortgage loan in addition to their regular mortgage. Applicants will need to meet all regular requirements and terms of a traditional insured mortgage. Once these requirements are met, the Canadian government will provide up to 10% of the purchase price of a newly constructed home, or 5% of the purchase price of a resale home (home that has had a previous owner). This loan would be IN ADDITION to your minimum 5 % down payment. This loan will have to be paid back in full within 25 years, or if the home is sold, whichever occurs first. If the value of the home increase/decreases, and there are any capital gains/ losses, the government will participate in the gains/losses with you, as they will share the equity. Total borrowing under this program is limited to 4 times the applicant’s income.
You qualify for this incentive program if;
At least 1 applicant is a first-time home buyer, all applicants are legally authorized to work in Canada, and the total income on the application does not exceed $120,000. All requirements for a traditional insured mortgage must also be met.
When you sell your home, you MUST pay the loan back. If a sale does not occur, you may choose to pay the loan back in full at anytime before 25 years has elapsed. At 25 years, you must pay it back. This loan must be paid back in full and cannot be partially paid back.
When you sell your home, you MUST pay the loan back. If a sale does not occur, you may choose to pay the loan back in full at anytime before 25 years has elapsed. At 25 years, you must pay it back. This loan must be paid back in full and cannot be partially paid back.
When you sell your home, you MUST pay the loan back. If a sale does not occur, you may choose to pay the loan back in full at anytime before 25 years has elapsed. At 25 years, you must pay it back. This loan must be paid back in full and cannot be partially paid back.
When you sell your home, you MUST pay the loan back. If a sale does not occur, you may choose to pay the loan back in full at anytime before 25 years has elapsed. At 25 years, you must pay it back. This loan must be paid back in full and cannot be partially paid back.
I have worked with Jody & Sunny over the last 4 years on various residential real estate files.They are a great team of professionals who believe in educating their clients throughout the entire home buying process from start to finish. I highly recommend the Mortgage Force Team for anyone looking for their next mortgage.
I love dealing with the mortgage force team! They are informative, answer any questions I have and guide myself and my clients through the process. They make things so easy!
Being a single mom with rent, groceries, and all the living expenses to cover, I was not able to save up any down payment. Jody was actually able to put me in a program which allowed me to borrow my down payment from the line of credit I had. Thanks to her, I took possession my new condo on Nov 11, 2015
I wanted to thank them for getting us in the home of our dreams. Its rare these days to experience such quality of genuine care and service. Thank you
Jody and her team were a great help in finding the best mortgage for us. really appreciate the work they do for the client
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