Sutton Showplace Realty (2015) Chilliwack

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Is the First-Time Home Buyer Incentive a good deal for Home Buyers?

25 June 2019
Sutton Showplace Realty Chilliwack

The details of Ottawa‘s new First-Time Home Buyer Incentive (FTHBI) are finally out, and the question for any Canadian struggling to afford their first home is: is it a good deal?

Under the program, which was first announced in the federal budget in March, the government is offering an interest-free loan to help homebuyers take out a smaller mortgage and keep monthly repayments lower. New information released on Monday clarified that, when the loan is repaid, the government will also get a share of any gains from the appreciation of the property.

Vice versa, if the value of the home has dropped, Ottawa will shoulder a percentage of the loss.

The measure will reduce monthly mortgage costs by up to $286 and is expected to help some 100,000 families become homeowners, Jean-Yves Duclos, minister of families, children and social development, said in a prepared statement.

Sources consulted by Global News, though, had either negative or mixed reviews of the proposed incentive. Here’s what you should know:

Qualifying for the incentive

In order to participate in the FTHBI, you must meet two main requirements: be a first-time homebuyer and have an annual income of no more than $120,000.

The government sets out the criteria for who can call themselves a first-time buyer, a definition that is more nuanced than one might think. The income test is subject to requirements set out by lenders and mortgage loan insurers.

Buyers must come up with their own cash for a down payment of at least five per cent of the property value, but the incentive is meant only for mortgages greater than 80 per cent of the home value. In other words, if you’re planning on a down payment of 20 per cent or more, this isn’t for you.

The maximum home price you can aim for is four times your income plus the incentive amount.

Click here to find out how the math works, and if it's a good idea for new home buyers. The opinions mentioned herein are not that of Sutton Showplace Realty.

https://globalnews.ca/news/5398742/first-time-home-buyer-inventive-good-deal/?fbclid=IwAR1OS6el35_EXfNY40_3Tuq-28b9ofLsTk_KIJO9H1V5xh6tA6Ukz6BuN6A

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Happy Fathers Day

16 June 2019
Sutton Showplace Realty Chilliwack

Congratulations to the winner of our Father’s Day Contest! Thanks everyone for participating!


Any man can be a father, but it takes a special person to be a dad...

We hope you all had a wonderful Father’s Day.


Don't forget to claim your Home Owner Grant

03 June 2019
Sutton Showplace Realty Chilliwack

Friendly reminder that if you've received your Property Tax Notice, now's the time to claim your Homeowner Grant.


Link for Chilliwack: https://bit.ly/2JWpXAb
Link for Abbotsford: https://bit.ly/2W77tOX
Link for Mission: https://bit.ly/2QE2jsm