Have you been pre-qualified from a bank or mortgage broker?
Will you have a sufficient deposit to be submitted with an offer is this money available in your savings/checking account? If not when will you have access to it?
- What kind of downpayment are you looking at (5% - 20%)?
- What is your timeline for moving?
First time home buyer incentive CMHC program
Under the fine print for the first time homebuyer incentive program which was announced in March and will officially launch in September, a first time home buyer who earns less than $120,000 can qualify. The Canada mortgage and housing corporation would Kickin up to 10% of the purchase price of the home, providing the borrower comes up with a minimum amount for an insured mortgage which is now at 5%.
There's also a requirement that the total value of the mortgage plus the CMHC's portion don't eclipse $480,000. A government official says that effectively means the program is only available for properties worth a maximum of about $565,000 regardless of whether or not they have met the other requirements.
If that bar is met, the CMHC may kick in an additional 5% of the purchase price of a resale home. For a newly built home the CMHC may contribute up to 10%.
The steaks from the CNHC would be interest free, meaning no ongoing cost to pay down like a mortgage does.
But the government says in exchange for it stick the CMHC would get to participate in the upside and downside of the change "in the property value which means they would be entitled to any corresponding increase in the value" of a home when the buyer eventually sell. On the flip side the government would also be on the hook for any share of the loss if the property depreciates.
On a home costing $500,000 if the borrower puts up $25,000 and the CMHC puts up the same amount, the CMHC would then own 5% of that home. So if down the line the house appreciates to $600,000 and the borrower wants to sell they would have to give the CMHC 5% of the sale price - $30,000 in this example - not the $25,000 the CMHC put down in the first place.
First Time Home Buyer Incentives
Home Buyer's Plan
- You can withdraw up to $35,000 from your RRSPs
- The withdrawl is tax free and you have 15 years to repay it.
First Time Buyer Land Transfer Tax ( LT T) Rebate
Provincial L TT
You qualify for a refund of $4,000.
You qualify for a rebate up to $4.,475.