Are You a First-Time Home Buyer?
Learn About the National Incentive Program
The First-Time Home Buyer Incentive helps people across Canada purchase their first home. The program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment lowers your mortgage carrying costs, making homeownership more affordable. In our heated and expensive Real Estate market in Victoria, any assistance to help make your 1st purchase is very welcome!
Hot News – Incentive Program Expanded! First time home buyers purchasing a home in the Victoria Census Metropolitan Area are now eligible for an increased Qualifying Annual Income of $150,000 (instead of $120,000), and an increased total borrowing amount of 4.5 instead of 4.0 times their qualifying income.
These are a few criteria to determine your eligibility for the First-Time Home Buyer Incentive:
- Your total annual qualifying income doesn’t exceed $120,000 (or $150,000 if the home you are purchasing is in Toronto, Vancouver, or Victoria)
- Total borrowing is no more than 4 times your qualifying income (4.5 times if the home you are purchasing is in Toronto, Vancouver or Victoria )
- You or your partner are a first-time homebuyer
- Qualify as a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada
- You meet the minimum down payment requirements with traditional funds (savings, withdrawal/collapse of a Registered Retirement Savings Plan (RRSP), or a non-repayable financial gift from a relative/immediate family member)
The Incentive is like a second mortgage on your home. Your first mortgage must be greater than 80% of the value of the property and is subject to a mortgage loan insurance premium. It also must be eligible through Canada Guaranty, CMHC or Sagen.
A Place to Call Home
The insurance premium is based on the loan-to-value ratio of the first mortgage only. That is, the first mortgage amount divided by the purchase price. You don’t pay mortgage insurance on the incentive – it is included with the total down payment. The type of home you plan to purchase also plays a factor.
No one knows what will happen this year in the Victoria Real Estate market, but the consensus among most Realtors I’ve spoken with is that our market will continue to rise. Our inventory is very low and there are many buyers still looking to purchase. If you have any questions or if you’d like to start looking for your first home, contact the Bosdet Homes Team for a truly handcrafted experience.