Next week a new incentive put out by the federal government will make buying a house a whole lot easier for Canadians. The First-Time Home Buyer Incentive looks to lower mortgage costs for new home buyers by giving buyers 5 or 10 per cent of the house's cost. It will officially launch on September 2. This is all part of Canada's National Housing Strategy.
Last month the First-Time Home Buyer Incentive was announced and it is now finally about to launch. Next week the government will start accepting applications for the incentive. So if you've been thinking about buying a house it might be time to start seriously looking into it and if you'd be able to get the incentive.
"The First-Time Home Buyer Incentive is designed to benefit those who need more assistance with housing costs, middle class Canadians," said Jean-Yves Duclos, minister of families, children and social development and minister responsible for the Canada Mortgage and Housing Corporation, in a press release.
The incentive is open to all Canadian citizens, permanent residents and non-permanent residents who are legally allowed to work in this country.
Also, your total income must be $120,000 or less per year individually if buying alone or that same amount combined if buying with another person.
According to Zoocasa, in Canadian cities that have very high average home prices, people might not be able to take advantage of the incentive because the total borrowing amount is limited to only four times the qualifying income.
So places like Toronto and Vancouver might not have many people taking advantage of the incentive but places like Ottawa, Calgary, Saint John and Winnipeg which have lower average house prices could see more people using the incentive.
"We recognize this is a difficult housing market for many first-time buyers, and we are grateful to be doing our part by offering well-built, centrally-located homes to support those just getting into the market," said Biki Kang, president of Kang + Gill, a Victoria-based construction company, in a press release.
For this incentive, a home doesn't have to be a house. The types of properties included in the incentive are single family houses, semi-detached houses, town houses, condo units, duplex, triplex and fourplex.
So even if full on houses aren't your thing or still aren't something you can afford with the incentive, there are other housing options you can buy with the the help of this incentive.
But don't think this is free money. If you are approved for the incentive you'll have to pay the money back after 25 years or when you sell your home.
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