The First Time Home Buyer Incentive is a program which is made to help to own a home more affordable and benefits the qualified first time buyers without adding financial responsibility, to decrease their monthly mortgage payments. The First-Time Home Buyer Incentive helps people across to purchase their first home. This is in addition to your down payment lowering your mortgage carrying costs, making homeownership more affordable.
The first time home buyer incentive program is a shared equity mortgage which means that the government shares in the upside and downside of the property value. The borrower may not have to save as much of a down payment to be able to afford the payments associated with the mortgage by obtaining the Incentive.
You’re considered a first-time homebuyer if you have never bought a home before, or occupied a home that you or your current spouse or common-law partner owned in the last 4 years (the 4-year period begins on January 1 of the fourth year before the Incentive is funded and ends 31 days before the date the Incentive is funded), or you’ve just experienced the breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements).
The first time home buyer incentive program offers:
5% or 10% for a first-time buyer’s purchase of a newly constructed home.
5% for a first-time buyer’s purchase of a resale (existing) home
5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home.