9 ways the CMHC Home Buyers Incentive benefits Edmonton Buyers
Again we have done the research for you and picked holes in the new CMHC Homebuyer program for Edmonton Residents. Read on to learn more about this awesome program and contact us with any questions you might have.
The Bank of Canada has announced in their 2019 Federal Budget! They have proposed that they will be giving First Time Home Buyers an Incentive of up to 10% of their Purchase Price. Below i have outlined some of the most popular FAQ’s in regards to this drastic improvement to the Mortgage Rules and Guidelines.
9 Ways the CMHC Home Buyers Incentive Benefits Edmonton Buyers
1. Can i afford to buy my first home in Edmonton?
The Federal Government of Canada and the CMHC-The Canadian Mortgage Housing Corporation, will be helping first time home buyers in Edmonton and throughout Canada to lower their monthly mortgage costs. This is huge, as they have never given buyers this option previously. Applicants will also need to pass the Federal Stress test to ensure you can keep up with your monthly debt payments.
2. How much downpayment will you need to put down?
The minimum downpayment you still need to put down will be 5% of the Purchase Price of the home. The higher the downpayment, the lower your CMHC/Insurer premiums will be. These insurance premiums are included into your monthly mortgage payments.
3. How much will i receive from the Government as an incentive?
5% Incentive if it is an Existing homes or 10% If it is a Newly built homes throughout Edmonton and surrounding areas
4. How does the government give the funds?
The incentive that they are going to be providing will be given to applicants as a reduction in their Mortgage amount. For Example
If you are buying a home that is lets say:
Purchase Price $300,000 Residential Home in Edmonton
5% Down $15,000
Mortgage Amt $285,000
10% Incentive -$30,000 Newly Built Home in Edmonton**
**New Mortgage Amount $255,000!
6. How do i know if i qualify?
The one thing i always suggest prior to shopping for a new home, is to get pre approved. By doing this very important step first, you are then sure of exactly how much you qualify to buy. I can use your income, monthly debt payments and the correct calculations to ensure you are pre approved for the right amount. The Government incentive is only offered to House hold incomes totalling less then $120,00.
7. Do i have to Repay the Incentive?
Eventually you will have to repay this and most likely at re-sale of the property, but the Government is still finalizing these details as it is unclear at the moment how applicants would pay this back and when.
8. When can i take advantage of this Home Buyer Incentive?
The government is hoping September of 2019 or Fall-this will be finalized at a later time.
9. Can i still take advantage of the RRSP Home buyers Plan and the Incentive programme?
YES! This is huge for all the buyers out there who have been saving up their RRSP’s and wanting to use them at this time would be extremely beneficial. THE RRSP Home Buyers Program lets buyers use their RRSP’s as their downpayment -up to $25,000-with NO PENALTY as long as they pay back the RRSP’s within 15 years! With these changes to the mortgage here in Edmonton and throughout Canada, the government is hoping to increase that amount to $35,000. In result of this, the Canadian government is hoping that this change along with the Incentive program will help increase housing demands throughout Edmonton.
Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”