First-Time Home Buyer Incentive program kicks in on September 2

The program will “help middle-class families get on the housing ladder,” says Bill Morneau, Minister of Finance, allowing eligible first-time home buyers who have he minimum down payment for an insured mortgage with CMHC, Genworth or Canada Guaranty, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.

For existing homes, the incentive will be five percent, while for new homes there is a five percent or 10 percent option, with the larger share for new homes designed to boost housing supply, according to the government.

Of course there are rules. The incentive is available only to first-time home buyers with a qualified annual income of no more than $120,000 and the insured mortgage plus incentive amount cannot be greater than four times the buyer’s qualified annual household income.

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