Every Canadian deserves to have a safe and affordable place to call home. That is why the Government of Canada is helping middle class Canadians buy their first home through the First-Time Home Buyer Incentive.
They have launched of the expansion of the First-Time Home Buyer Incentive for Toronto, Vancouver, and Victoria, as proposed in the Fall Economic Statement.
Starting today, May 3, 2021, through to the end of the program, eligibility is enhanced for applicants in the Census Metropolitan Areas of Toronto, Vancouver and Victoria, by raising their qualifying income threshold from $120,000 to $150,000 and by increasing their total borrowing threshold from 4 to 4.5 times their qualifying income. With a minimum down payment, this targeted expansion raises the maximum house price for eligible first-time home buyers in these cities from about $505,000 – under the original program parameters – to about $722,000. The original parameters will remain the same for all other housing markets.
The First-Time Home Buyer Incentive helps middle class families take their first steps towards homeownership by reducing their monthly mortgage payments without adding to their financial burdens.
Check out the First-Time Home Buyer Incentive program and enhancement details, and the fact sheet explaining potential savings.
Quick facts about the First-Time Home Buyer Incentive
- Canada’s First-Time Home Buyer Incentive (Incentive) helps qualified first-time homebuyers purchase their first home as the Incentive reduces the size of their insured mortgage and their corresponding monthly mortgage payment.
- The Government of Canada allocated $1.25 billion through Budget 2019 over three years (starting in 2019) for this program.
- The Incentive allows eligible first-time homebuyers who have the minimum down payment for an insured mortgage (through Canada Guarantee, CMHC or Sagen) to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.
- The program offers qualified first-time homebuyers a 5 or 10 per cent shared equity mortgage for a newly constructed home or a 5 per cent shared equity mortgage for an existing home.
- No on-going repayments are required, the Incentive is not interest bearing, and the borrower can repay the Incentive at any time without a pre-payment penalty.
- From May 3, 2021 to end of program, the government is expanding eligibility in the Census Metropolitan Areas of Toronto, Vancouver and Victoria by raising the qualifying income threshold from $120,000 to $150,000 and by increasing their total borrowing threshold from 4 to 4.5 times their qualifying income.
- Canada’s National Housing Strategy (NHS) is a 10-year, $70+ billion plan that will give more Canadians a place to call home—this includes more than $13 billion committed through the 2020 Fall Economic Statement.
- Budget 2021 key housing measures includes helping to build, repair, and support 35,000 affordable housing units for vulnerable Canadians through an investment of $2.5 billion and a reallocation of $1.3 billion in existing funding.
Canada Mortgage and Housing Corporation
As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC’s aim is that by 2030, everyone in Canada has a home they can afford, and that meets their needs. For more information, please visit cmhc.ca or follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.
To find out more about the National Housing Strategy, visit http://www.placetocallhome.ca.
SOURCE Canada Mortgage and Housing CorporationTweet