The program was designed by the government of Canada to help first time home buyers purchase their first home.
In a nutshell, the Government will lend you 5% or 10% of the purchase price of your home (10% applies to new construction). When you sell your home, or after 25 years, you are required to pay the same percentage back (either 5% or 10%), based on the value of the home at that time.
Example:
You receive a 5% incentive ($20,000) on a $400,000 purchase price
If your home increases to $500,000, you will need to pay back 5%, ($25,000)
If your home decreases to $350,000, you will need to pay back 5%, ($17,500)
The Benefits:
Gives you more buying power
Allows you to buy now rather than later
Lowers monthly expenses due to a smaller mortgage
Makes home ownership more affordable
Many families have found the program a viable entry into home ownership. Take the time to review the incentive and see if it may be worth pursuing.
Link to Government of Canada First-Time Home Buyer Incentive
https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
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