Buying a home is challenging for a first-time homebuyer. There are various tasks and requirements to be completed before buying a home. The first-time homebuyer incentive is a program that helps the qualified First Time Home Buyer to reduce their mortgage monthly payments without any financial pressure and helps people across to purchase their first home.
The program is designed to lower the mortgage as it gives 5% to 10% of the home’s payment to put towards a down payment in addition to your down payment lowering your mortgage carrying costs. It makes your first-time homeownership more affordable. First Time Home Buyer Incentive is a shared equity mortgage in which the government shares the upside and downside payment of the property.
Before applying for the First Time Home Buyer Incentive you must consider the following aspects:-
- As the loan is a shared equity loan, the government gets any profits in the property value.
- If the value of your property gets hit, you have to repay less than the amount you’ve borrowed to the government.
- If the value of your property gets hit, you have to repay less than the amount you’ve borrowed to the government.
The first time home buyer incentive program offers:
- 5% or 10% of the newly constructed home.
- 5% or 10% of the newly constructed home.
- 5% or 10% of the newly constructed home.
You must be qualified as a first time homebuyer and meet the following conditions to get the benefits of the “First Time Home Buyer Incentive”:-
- You should be a first-time buyer.
- The household income should be less than $120,000.
- The maximum household income should be $120,000 or $480,000.