Professional Realtors in Toronto, ON

Now, we have much more insight to the FIRST TIME HOME BUYERS incentive that was announced a few months ago.nn-This program is exclusively for First Time Home Buyersn-5% for a resale home and 10% for new constructionn-You MUST have the 5% downpayment on your own (cannot be a gift)n-It is ONLY available for CMHC insured mortgages and thus you cannot use a 15% downpayment to get the extra 5% down in order to bypass mortgage insurance.n-MAXIMUM combined income of 120kn-MAXIMUM mortgage amount is 4X your income. So, if you make $120k, you can get a mortgage of 480k.n-This a REGISTERED MORTGAGE (SECOND MORTGAGE) on the property. This means that you will very likely be ineligible for a Home Equity Line of Credit in the future.nnPayment Options (the JUICY part):nnIf you get 5% OR 10%, when you sell the property, you have to pay back the 5% or 10% of the SALE PRICE. So if you purchased something at the max of 600k and they gave you 5% (30k) and in 10 years sold it for 800k, you would be paying back 40k.nnIf you stay in the property for 25 years, the loan is now due to the amount of 5% of the appraised value at the time. So in this scenario, if you bought for 600k and now it’s worth 1M, you will pay back 50k.nnThese are the details that EVERYONE should know before choosing to enrol in the program.nnMy opinion is that no one should use this unless its an absolute must! Comment below or message me directly if you have further questions!