Winnipeg Mortgage Brokers Explain the First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive (FTHBI) introduced earlier in 2019, officially launched on September 2nd. Here are some things you need to know:

  • This incentive is a form of a shared equity mortgage with the Government of Canada
  • The program launched September 2nd , 2019 and closes November 1st, 2019
  • At least one borrower must be a first-time homebuyer (has never purchased a home before, or has not occupied a home that they owned in the last 4 years, or has gone through a breakdown of marriage or common-law-partnership). The 4-year period begins January 1st of the fourth year before the Incentive is funded and ends 31 days before the Incentive is funded.
  • Canada Mortgage and Housing Corporation (CMHC) provides 5% of your down payment for the purchase of existing homes, or 10% for a new build
  • For both an existing home or new construction, the closing date cannot exceed March 31st, 2024
  • You still need to have the minimum down payment of 5% (from your own sources) to be eligible
  • Your maximum qualifying income is no more than $120,000 per year
  • The mortgage amount cannot exceed 4 times your household income
  • Mobile and Manufactured homes are eligible for this program
  • The Incentive will not be registered on the borrower’s credit bureau, however, it will be registered on title to the property
  • The Incentive is repayable after 25 years or when the property is sold (whichever comes first)
  • If the borrower decides to purchase a new property after joining this shared equity program, a port under the FTHBI program will be considered a sale, which will require repayment of the Incentive.
  • The Government of Canada will share in the upside and downside of the property value upon repayment.

If you have any questions about the First-Time Home Buyer Incentive, about how it could impact your mortgage qualification or if it is even the right choice for you, don’t hesitate to contact one of the experienced Winnipeg Mortgage Brokers at One Link Mortgage. Call 204-954-7620 for more information today!