National Housing Strategy First-Time Home Buyer Incentive Program
What is this program?
- Government of Canada will match a buyers downpayment, reducing mortgage payment, mortgage amount and over all interest paid.
- It is a shared equity mortgage (“SEM”):
- The government of Canada has a shared investment in the home and shares in both the upside and downside of the property value.
- It is not interest-bearing, with no regular principal payments, and is repayable in full at anytime without a prepayment penalty.
- Only one of the buyers has to be a first-time homebuyer
- Incentive amounts
- Existing home 5%
- New construction up to 10%
- No repayment required for 25 years or sale of property
- Applications start Sept 2, 2019
- For closings after Nov. 1, 2019
- For purchases with less than 20% (total) down payment
- Buyer(s) total income must not exceed $120,000 per annum
- The mortgage + Incentive amount cannot exceed 4 times the Buyer(s) total annual income.
- See National Housing Strategy website for more details and examples.
- For 1 - 4 unit owner-occupied purchases
- Purchase Plus Improvement mortgages are allowed
Any questions please contact me anytime.
Please visit the National Housing Strategy website for complete details