First-time buyer Canada—Incentive Eligible applicants need to:
- The first-time buyer Canada should have never purchased a home in Canada before.
- The first-time purchaserr Canada should have previously purchased a home but need to buy again for reasons such as marriage or separation.
- The first-time purchaser Canada should have not lived in their spouse’s home for the past four years.
- The first-time purchaser Canada should pay a down payment of not less than 5% and not more than 20% of the purchase price of the home
- You should have an annual income of no more than $150,000 (adjusted from $120,000 to $150,000 in 2021)
- The first-time buyers in Canada should have the amount of mortgage + incentives held not exceeding 4.5 times the annual household income (adjusted in 2021, up from 4 times to 4.5 times)
Canada’s First-Time Home Buyer Incentive specific policies are:
- For those who buy an existing home, the government will subsidize 5% of the value of the home.
- For those who buy a new home, the government will subsidize between 5% and 10% of the value of the home.
- No ongoing repayment is required, and the grant is non-interest bearing and can be repaid at any time.
- The buyer must repay the grant after 25 years, or before selling the property.
For example, if the first-time buyers in Canada purchase a home worth $500,000, this policy will save the first-time buyers in Canada $286 per month or $2,430 per year. Since this loan is granted as a percentage of the value of the home, the higher the value of the home purchased, the larger the corresponding loan amount.
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