We have started seeing a lot more clients taking advantage of the First-Time home Buyer’s incentive. This allows clients to put an extra 5% down on their home by way of a shared equity mortgage from the Government. The 5% mortgage does not have monthly payments – instead the homebuyer must only repay the incentive after 25 years or when the property is sold.
A shared equity mortgage means that the government shares in the increase or decrease in value of your home. Practically speaking, if the value of your home decreases then the amount you have to pay back decreases and vice versa.
The Government of Canada provides a clear explanation of the eligibility for the program at: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive.
If you have any questions about the First-Time Home buyers Incentive or any other questions in relation to purchasing a home we would love to assist you! Please give our office a call.