In this example, John is seeking to buy a new condo for $400,000 at Wellington West Lofts. Under the First-Time Home Buyer Incentive, John can apply to receive $40,000 in a shared equity mortgage (10% of the cost of a new home) from CMHC, lowering the total amount he needs to borrow.
John pays $228 less in mortgage payments every month
Compared with an insured mortgage, the CMHC First-Time Home Buyer Incentive would enable John to pay $228 less in mortgage payments every month. John can use these savings to invest in his future, such as buying a home better suited to his needs, paying down his insured mortgage sooner, or having more monthly disposable income. When John sells her condo in the future, CMHC is repaid.
More helpful home buying articles
Whether you’re a first time home buyer or seasoned real estate investor when you’re looking to buy a home, there are often many things you need to consider and questions you need answered. Here are some additional articles you may find helpful.
New information has been released. Please see this recent article for further clarification.
New details released about the First Time Home Buyer Incentive program