Wednesday, August 28, 2019
The details of a $1.25 billion first-time homebuyer incentive program were released this morning at Metroview’s latest development in Richmond Hill.
Development manager Dalvir Passi welcomed dignitaries to 8888 Yonge Condominiums where the federal government announced the new incentive designed to help new homeowners cut their monthly mortgage costs.
From left to right: Metroview Development Manager Dalvir Passi, Richmond Hill MP Majid Jowhari, Minister of Families, Children and Social Development Jean-Yves Duclos and King-Vaughan MP Deb Schulte.
The First Time Homebuyer Incentive (FTHBI), which starts Sept. 2, works in the form of shared equity between the homeowner and the government.
According to Minister of Families, Children and Social Development, Jean-Yves Duclos, the program allows qualified buyers to borrow the equivalent of 5 percent of the purchase of a re-sale home and 5 or 10 percent of the purchase of a new build. He said the FTHBI is a new way for Canadians to reduce their mortgage payments without having to increase their down payment.
“We understand and feel how big a struggle it is for younger, middle-class families, in particular, to achieve their dream of first-time homeownership,” Duclos told the crowd. As many as 100,000 Canadian families may benefit from the program, he added.
While it’s estimated new homeowners could save up to $300 a month on a $500,000 house, actual savings will depend on amortization, interest rates, and mortgage terms.
Homebuyers will be required to repay the incentive after 25 years or when the property is sold — whichever comes first. The percentage borrowed is the percentage owed at the time of repayment.
“Every Canadian deserves a safe and affordable place to call home,” said Richmond Hill MP Majid Jowhari. “Thanks to mortgage payments that are more affordable, many families will have hundreds of dollars more each month in their pockets.”
Who’s eligible to apply for this incentive?
To be eligible for the FTHBI, you must:
- Be a first-time homebuyer
- Have a maximum annual income of $120,000
- Expect to borrow no more than four times your income
- Have a down payment that is less than 20% of the purchase price
- Have a minimum down payment that meets the following criteria: 5% of the first $500,000 of the lending value, and 10 percent of the lending value above $500,000
For full application details visit the complete online guide to the First-Time Home Buyer Incentive. You’ll also find helpful self-assessment tools, including an eligibility calculator.
“As our project here at 8888 Yonge will launch in late September, we will be sure to apprise our prospective purchasers of the availability of the First Time Homebuyer Incentive,” said Metroview’s Passi.