First Time Buyers:
Is the government lending you a hand in acquiring a house? You've probably read about how qualifying for a mortgage have been changed with more stringent rules making it harder for buyers to qualify for a mortgage- well here's some good news- the 2019 Federal Budget has some help for first time buyers. Thru CMHC and in return for 10% ownership, it can now be easier to qualify.
"Precise details of how the program works won't come out until later in the fall, but today the government provided a rough breakdown of how it might work for a prospective buyer. If a first-time buyer wants to buy a home that costs $400,000, they'd have to come up with a $20,000 down payment, under both the new rules and the old ones.
Is the government lending you a hand in acquiring a house? You've probably read about how qualifying for a mortgage have been changed with more stringent rules making it harder for buyers to qualify for a mortgage- well here's some good news- the 2019 Federal Budget has some help for first time buyers. Thru CMHC and in return for 10% ownership, it can now be easier to qualify.
"Precise details of how the program works won't come out until later in the fall, but today the government provided a rough breakdown of how it might work for a prospective buyer. If a first-time buyer wants to buy a home that costs $400,000, they'd have to come up with a $20,000 down payment, under both the new rules and the old ones.
Normally, they'd have to take out a loan for $380,000 to cover the rest of the purchase price — but under the new program (if it's a newly constructed home), CMHC could kick in $40,000 toward the purchase price, in exchange for a 10 per cent stake in the home.
That brings the buyer's mortgage down to just $340,000 for the home, instead of $380,000. On a standard mortgage at 3.5 per cent interest, that translates into a monthly mortgage payment more than $200 lower than it would have been for the 25-year life of the loan. That's more than $2,700 a year in potential savings."
