The First Time Home Buyer's Incentive

Qualifications and Restrictions:

First-time home buyer
Maximum salary of $120,000
Total value of the mortgage plus the CMHC portion must equal $480,000 or less (meaning it is only available for properties worth $565,000 or less)
Home buyer must come up with 5% (minimum) down payment and qualify for a mortgage (for both resale and newly built homes)
CMHC will contribute up to an additional 5% for resale homes
Newly built homes make the home buyer eligible for up to 10% from CMHC

All of this means that the money from CMHC is interest-free and there are no traditional repayments required. This is because it is an equity share. As a result, your monthly payments are reduced (your down payment is higher with CMHC's contribution) and CMHC is repaid a proportionate percentage of the price when you sell the home (5% from sale price if 5% was contributed when the home was purchased) or after 25 years- whichever comes first.

For example:

Imagine you are buying a a two-storey townhome in our Merritton Commons community for $464,900. Your required 5% down payment would be $23,245 and it would grow to $46,490 with a 5% contribution from CMHC.

Due to the borrow amount being limited to four times your annual income and a maximum purchase price of $565,000, a lot of residents in the GTA will unfortunately not be eligible for the FTHBI as the average condo was sold at $590,274 and the average house at $832,703.

The good news? If you're looking to buy a home in Niagara, this can apply to you! Learn more about the First Time Home Buyers Incentive.