On September 2, the Government of Canada launched a new incentive for purchasing a first home. The program, whose main goal is to help first-time buyers, is intended to make home ownership more affordable.
Offered in the form of a loan, the incentive lets you reduce your monthly mortgage payments without having to make a bigger down payment. The incentive amount varies from 5% to 10% of your home's cost, depending on the type of home you plan to purchase.
This program is intended mainly for first-time buyers, but that doesn't mean you can't take advantage of it if you've already owned a home! See all the eligible situations. You should also keep in mind that the home in question must be your main residence and be located in Canada.
You're in luck! The incentive can give you a hand to update your new home. That's because in addition to new homes, the incentive applies to existing ones on which immediate work is done. The value of the enhanced property will then be used to calculate the eligible amount proposed under the program.
You must repay the amount granted by the Government of Canada within 25 years, or earlier, if you sell your home. You can also repay the incentive at any time without penalty.
Once you have learned about the program, you have to determine your eligibility. You can do this by contacting a mortgage advisor or using the program eligibility and savings calculator. Then, choose the incentive that's right for you and fill out the application documents on the program website. Bring them to your lender, who can complete your application.
To learn about all the terms and conditions of the First-Time Home Buyer Incentive program, visit the National Housing Strategy website.
The information above is provided for information purposes only and is intended only to present a general overview of the First-Time Home Buyer Incentive program. For more information on the program, its eligibility requirements, and how it works, please visit the website of the National Housing Strategy.
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