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FIRST-TIME HOME BUYER INCENTIVE

FIRST-TIME HOME BUYER INCENTIVE

A major item from this week’s federal budget is the first-time home buyer incentive.

Under the plan, the government will advance up to 10 per cent of the purchase price of a home so first-time buyers can take out a smaller mortgage and keep monthly payments lower.

Here are the five main things you need to know about this bold incentive:

  • Buyers must make a down payment of at least five per cent but less than 20 per cent. And they must have a household income below $120,000 a year.
  • The amount of the insured mortgage plus the CMHC incentive is capped at four times the home buyer’s combined annual income, or up to $480,000.
  • The CMHC will provide up to $1.25 billion in incentives over three years starting in September. Buyers of newly-constructed homes will get 10 per cent of the home price, while those purchasing an existing property will get five per cent.
  • Home buyers must repay the CMHC, either when the home is sold or sooner.
  • The federal government plans to raise the amount first-time buyers can pull from their RRSP to fund the purchase of their home, $35,000, up from $25,000.

Changes are also being planned to allow people dealing with the break-up of a marriage or common-law partnership to dip into those savings a second time.

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Kelly Heintz

Kelly started her career in Real Estate in 2008 working as a Legal Assistant for a small law firm. In 2011 she started working with a top producing Realtor, and over the next 7 years turned that business into one of the highest performing teams in Calgary. Kelly’s passion, commitment and dedication for what she does makes her the right agent for her clients – regardless of whether they are buying, selling or investing in real estate.

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