- If you've been googling houses for sale in Quebec lately, we've got good news for you.
- The government is about the make it a lot easier to buy your first home in Canada.
- Take a look at the details to see if you qualift below!
It's now going to be much easier for first-time homebuyers in Quebec and across Canada to purchase their first home. On September 2nd, 2019, the Government of Canada is launching the First-Time Home Buyer Incentive that will "help middle-class families take their first steps towards homeownership by reducing monthly mortgage payments required for first-time homebuyers without increasing the amount they need to save for a down payment."
According to former Liberal MP, Kent Hehr, "the First-Time Home Buyer Incentive will reduce monthly payments on a first mortgage by up to $286 for 100,000 families across Canada looking to buy their first home—that's a significant saving per year. The program will complement other National Housing Strategy initiatives producing meaningful results across the country that are helping Canadians access affordable homes and build their life".
For two months, all eligible first-time buyers in Canada will be able to benefit from this program. Starting on September 2nd, Canadians can register for the program by visiting this website.
If you meet the established criteria, you'll be able for a 5% to 10% shared equity mortgage from the Government of Canada. Buyers must repay the incentive in 25 years or if the property is sold, whichever comes first.
Here are the criteria you must meet if you want to apply for the incentive:
- you need to have the minimum down payment to be eligible
- your maximum qualifying income is no more than $120,000
- your total borrowing is limited to 4 times the qualifying income
The incentive is only up to a maximum of 5% if you purchase an already existing home. For a newly constructed home, 5% to 10% will be covered for the first-time buyer's purchase.
Many young Canadians and first-time homebuyers face barriers when trying to save for a down payment. The incentive allows borrowers to not have to save as much as previously required.
Young Canadians are in fact the lowest percentage of homeowners in the country. The government hopes that this incentive will give young Canadians the ability to purchase a new home easier than ever before.
Single homes are not the only types of properties eligible under this incentive plan. According to the plan, residential properties can include 1 to 4 total units.
Therefore, if you want to purchase an investment property for the first time such as a duplex or triplex, you may be eligible for the incentive if you qualify.
Types of residential properties include:
- single-family homes
- semi-detached homes
- town houses
- condominium units
Finally, you're considered a first-time homebuyer if you meet one of the following qualifications:
- you have never purchased a home before
- you have gone through a breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time homebuyer requirements).
- in the last 4 years, you did not occupy a home that you or your current spouse or common-law partner owned
The incentive begins on September 2nd, 2019 and if you're looking to purchase a home for the first time ever, make sure to sign up!
To find out more about the First-Time Home Buyers Incentive and to register, please visit the government's official portal.