First Time Home Buyer Incentive Program

On September 2nd, the Government of Canada launched a new program to help first-time home buyers to lower mortgage costs. The new $1.25-billion incentive program would allow prospective buyers to apply for an interest-free loan from Canada Mortgage and Housing Corporation (CMHC).

Here's a ton of info on the new program.

An Eligibility Calculator to test and evaluate different financial scenarios and view their impact on mortgage payments.

A Product Highlight Sheet (PDF) including a summary of key program details in a format that is easy to download, print and share.

A Journey Map breaking down the application process step by step.

An Application Process diagram (PDF) showing the interactions between all of the parties involved. (Available on desktop only).

The government would share in the equity in the property.  If the government gave 5% of the purchase price, they would need to receive 5% of the sale when it is sold.  This is great if the price goes down, but in a city like Vancouver, where prices have been consistently going up, that could equal a lot of money.  They don't want back the original 5% of the purchase price, they want back 5% of the value when it is sold.  

Let me know if you have any questions about these programs, I can refer you to the experts in this field.

Enjoy, Rick G.