Back in March, the Federal government and CHMC announced that they would be injecting money into the real estate market via “contributions” to first-time home buyers of up to 10%. It was unclear what the details were... that is, until last week.
The Details - Now we have some further details to share - the following is a summary of the program:
- This program starts in September 2019
- Eligible for 5% of a resale home
- Eligible for 5% or 10% of a pre-construction home
- Household income must be less than $120,000
- The total amount of the mortgage plus the CMHC’s contribution must not be greater than $480,000
- The maximum purchase price is $565,000
- The loan is interest-free
- The government will share all appreciation and depreciation of the home, proportionally to the amount contributed
- Must pay off the loan after 25 years or when the property is sold
- The government has set aside $100 Million for the program
In a nutshell, it seems like the Federal government is investing in real estate via first-time home buyers. Please let me know your thoughs if you would like government to be investor together with you and share the profit of your home. Please let me know if you would like to know what $565 k can buy you 416-829-0340 Ksenia Warhol
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