It is simple to see the sharp interest rates destroying the chances of possessing a house of your own. Isn’t it? Along with the increasing inflation rate and high-interest loan plans prevent you from getting hands on your dream home. Don’t they?
But, guess what? Canada’s First Time Home Buyer Incentive (FTHBI) is here to safe keep your dreams. How? They offer a partnership mortgage which allows you to borrow with the main mortgage deal. This means that you don’t need to save extra for any down payments, which makes your life as easy on the pocket as possible.
How does this program work?
FTHBI, in Canada, offers partnership equity mortgage. This partnership is shared between the federal government and the buyer. Under this program, the government grants an interest-free loan for up to 10% of the buying price of a established house. Or 5% for a home that is being re-sold! Their purpose? To assist you in the down payment process.
This loan, added to the total house’s mortgage, must be repaid within 25 years. Or when the house is sold—depending on what happens earlier amidst either of these. A major merit of this program is to allow the first-timers to reduce their monthly mortgage. This is because the government tends to be sharing the equity of the home with the people. The amount raising to the mortgage is lower, that sows the seeds of low monthly payments. It is particularly helpful for those who were before struggling in ways incomparable for a down payment. Or for those who are in search of an expensive house!
Are there any criteria to fall under this program?
The criteria for eligibility in this program are given below:
Have a household income which is worth less than $120,000 Canadian dollars.
- Have a least down payment of 5% of the home price available.
- Must get an approval for an insured mortgage through either the Canada Mortgage and Housing Corporation (CMHC). Or, the Genworth Financial, or Canada Guaranty.
- One must be a Canadian citizen, permanent resident, or a non-permanent resident having the authority to work in Canada.
- It must be a purchasing property that will be their primary house.
- It’s important to note that the FTHBI program is not available for properties with a sale price of more than $600,000, Canadian dollars.
Is the FTHBI worth it?
This is an valuable tool for first time buyers who need help with the upfront cost of homeownership. It makes housing schemes more affordable and allows newbies to enter the housing market sooner. This is because they will now be able to afford an otherwise unreachable house. This incentive, initiated by the government, is an excellent option to consider to update the living standard of people. Especially those who could not afford it.
The program is good for providing a shelter for their future children, or grandchildren and allows to have a roof over their heads. This, coupled with the intentions to put upfront the finest housing scheme. with the most flexible interest-free loan plan, the incentive gives an enticing once-in-a-lifetime opportunity. Especially for those who wouldn’t have thought of this idea earlier.
The program was announced in 2019 under the federal government’s National Housing Strategy with the intention of minimizing the financial constraints faced by first-time home buyers. Through offering them a shared equity mortgage.
Conclusion
To conclude, the First-Time Home Buyer Incentive program (FTHBI) is a good choice for first-time buyers. This is to aid their sale of a home in Canada. This initiative enables one to avail an interest-free loan for up to 10% of the sale price of a new built home. Or 5% for a resale home that can assist with the down payment. The government shares a percentage of the home’s value. In return, shares in the equity and appreciation of the home are given.
Also, it is important to hold on to the details about this program. Like the government’s share of the equity and the fact that it is only available for certain types of homes. Thus, take the decision to pave your way to your dream house via FTHBI. make sure to have clarity and educate yourself.
FAQ’s
Are properties under the FTHBI safe to opt for?
FTHBI, is an emerging initiative for the first-time buyers which assists them by granting an interest-free loan for their down payment. So, the answer is, YES. This is a safe option to look up for. And the government has developed this for facilitating the Canadian citizens.
If I have bought a house before, will I still be applicable for this loan?
To avail this program, you either have to be a first-timer in home buying. Or must not have bought a home for the past four years in Canada.
What is the largest sale price for buying the house of my dreams via FTHBI?
Need to to note that it is unavailable for properties with a sale price that is greater than $600,000 Canadian dollars
