Chad Robinson B. Eco
The First-Time Home Buyer Incentive- Is it the Right Fit for you?
By: K Surca, Best Interest Mortgages
There may be welcome news for first time homebuyers when it comes to trying to meet the often strict financial criteria needed to finance a property. If you have been sitting on the sidelines of the house buying frenzy and wondering how you will ever be able to save enough for a downpayment, new Federal Government initiatives may help ease the financial strain and make the idea of homeownership more of a possibility.
While this may be good news for potential first time homeowners, like everything in life, it is still important to read the fine print and know what you are getting into before enrolling in a new Government program. There still may be better options open to you. Let’s look more carefully at what this Government program entails and whether it may be the best option for your needs.
This year’s Federal Government’s budget included a few key additions that are of special interest to the Mortgage and Real Estate sector. A portion of the budget directly targets first time homebuyers. Specifically, 1.25 billion dollars has been set aside to assist in the often daunting financial task of meeting the financial requirements to own one’s own home. The Government initiative is entitled the First-Time Home Buyer Incentive.
The program will be available to the public just at the time of the year when families are gearing up for the new school year on September 02, 2019. First applications will be accepted on this day, with the first closing on a property, utilizing Government help, taking effect on November 1, 2019. Certainly, with a Government rollout of this scale, there will be media hype surrounding the launch of the program. However, being armed with the knowledge of what this represents will help you sort out how or if the First Time Home Buyer Incentive is right for you.
The average house prices in large urban centers across the country are continually rising and in centers such as Ottawa, home owners in some areas have seen a doubling in the value of their property. While good news for current homeowners, this represents a barrier to those yet to get on the property ladder.
Before you take an active interest in the First-Time Home Buyer Incentive one must be clear on what exactly is a first time home buyer. Based on the criteria set out by the Canada Revenue Agency (CRA), you may be surprised to know that the definition of a first time home buyer has a wider scope than just those individuals who have never purchased a home before. You may qualify for this program if:
In other words, if you meet one of the above criteria, you are eligible to take part in this program. Once you have determined that you will be eligible, now be aware that you will be required to sign a consent form in order to show that you are clear on the conditions as outlined in addition to providing an attestation that proves you are a first-time homebuyer ( you must meet only 1 of the above conditions). Email us at firstname.lastname@example.org to obtain the consent form or continue to learn more at http://www.bestinterest.ca/solutions/1sttimeinfo.
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