The long-awaited budget has arrived with an eye on First Time Homebuyers (FTHBs).
I have seen a flood of emails and ads referring to the First Time Home Buyers' incentive in the new federal budget of 2019.
So as usual, I want to bring the real facts to you so you can make a sound decision based on circumstances and your situation.
Yes, there are new handsome incentives in the budget for FTHBs; here are some key points for your information and decision making;
- Budget 2019 has introduced the First-Time Home Buyer Incentive that would allow eligible FTBHs to apply to finance a portion of their home purchase through a Shared Equity Mortgage.
- What is Shared Equity Mortgage? The ownership, and equity, of the property, is shared among you (the Borrower) and the Lender. Whenever you sell the property, you will have to share the profit (and loss, if any) with the Lender to a portion of their investment (borrowed money by you).
- Eligible FTHBs would be qualified for 10% Shared Equity Mortgage for a newly constructed home or 5% for an existing home.
- The Incentive would be available to FTHBs with household incomes under $120,000/Year while participants’ insured mortgage and the Incentive amount cannot be greater than four times the participants’ annual household incomes. Which means a max of total loan amount could be $480,000 based on a maximum limit of household income of $120,000.
- Another incentive is that the FTHBs can now withdraw up to $35,000 from their RRSPs which was previously capped at $25,000.
The information provided is from and for more details, please visit;
https://www.budget.gc.ca/2019/docs/themes/housing-logement-en.html
I am a call away to discuss your individual needs and how you can make the best use of the Budget 2019 incentives tailored to your requirements.
You can call at your convenience on my direct line at 416-908-5600
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