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Beginner’s Guide to First-Time Home Buyer Incentive

 

One of the best ways to make buying a house easier is the First-Time Home Buyer Incentive.

While buying a house can be a rather daunting experience, there are ways to make it easier. Considering how grueling this process can be, it would be in your best interest to do all you can to make buying a house go more smoothly. One of the best ways to make buying a house easier is the First-Time Home Buyer Incentive.

 
 
 

Now, it’s understandable if you may not know much about this. Many homebuyers have yet to fully explore the First-Time Home Buyer Incentive. To help you out, we thought it would be useful to put together a brief guide on this subject. If this is something that you’re interested in learning more about, read on for a beginner’s guide to First-Time Home Buyer Incentive.

What Is the First-Time Home Buyer Incentive?

The First-Time Home Buyer Incentive program in Canada helps first-time homebuyers to own their first home. It offers a 5 % or 10 % discount on the purchase price of the new home that can be used towards the buyer’s down payment. That discount lowers the monthly mortgage costs, making home ownership more affordable.

Who’s Eligible for the First-Time Home Buyer Incentive?

While it may seem straight-forward, it’s understandable if you don’t know who is eligible for the First-Time Home Buyer Incentive. This is why we thought it would be useful to discuss what makes individuals eligible for the inventive. Here’s a quick run through of the criteria that makes you eligible for the program:

  • You must be a first-time homebuyer.

  • Your down payment needs to be at least 5% of the total purchase price, and no more than 20%. That’s the threshold of insured mortgages that they require.

  • The combined income of the household cannot be more than $150,000, and the amount of the mortgage (including any other loans against the property) and the tax incentives combined cannot be more than 4.5 times that amount.

  • Repaying the loan must be completed within 25 years or when you sell the house, whichever comes first.

  • Take note that the maximum house value you will be able to apply for is capped at $722,000

THE BOTTOM LINE

We hope this article proves to be useful when it comes to helping you buy your first home. As you can see, the First-Time Home Buyer Incentive can be easily utilized as long as you know how to navigate this process. Feel free to look back on this article if you are ever confused at any point so that everything goes smoothly.

Are you a first-time home buyer in Canada who helps with the entire process? Here at Level Up Mortgages, we simplify the mortgage journey for new buyers, newcomers, and the self-employed. Want to learn more about mortgages? We can help you! Contact us today to get more information about services and how you can find the best mortgage for your needs.

See what you qualify for or contact Paul to get your pre-approval.

  • Paul Davidescu (www.levelupmortgages.com)

  • Level Up Mortgages

  • 604-809-3188

  • paul(at)levelupmortgages.com

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First Time Homebuyers, IncentivesPaul Davidescu2022