The First-Time Home Buyer Incentive launches September 2, 2019 and will be effective on homes purchased that CLOSE on or after November 1st, 2019. The details and guides can be accessed from the linked launch date above.
As with most government programs attached to homeownership the message offered at program launch is never reflective of the outcomes homeowners will encounter who access them without a Strategy to Wealth guiding their decisions.
The Wealthy Homeowner™ offers members guiding principles that allow these programs to be navigated and at times capitalized on for wealth building.
As with most government programs attached to homeownership the message offered at program launch is never reflective of the outcomes homeowners will encounter who access them without a Strategy to Wealth guiding their decisions.
The Wealthy Homeowner™ offers members guiding principles that allow these programs to be navigated and at times capitalized on for wealth building.
PROGRAM BREAKDOWN
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Targeted Users:
-Canadians who have not owned a home in the last 4 years -Canadians with a household income below $120,000 today -Canadians looking for immediate carrying costs relief -Canadians willing to give up Tax FREE capital gains -Buyers of NEW homes especially are targeted |
Maximum Thresholds:
-Purchase Price of Under $600,000* -Maximum Down Payment of 20% exclusive of incentive -Maximum term of Incentive before repayment 25 years *maximum purchase price assumes $120,000 income and a 20% down payment exclusive of incentive |
Key Facts:
-CMHC will register a 2nd mortgage on the home in the amount of the incentive taken
-maximum purchase price of $600,000 (with an 80% LTV first mortgage exclusive of incentive)
-CMHC Mortgage Lender Default Insurance must be placed on 1st mortgage
-Mortgage Lender Default insurance can be added to payments but is not counted in the qualification measure
-Payback will be determined by house price change calculated on fair market value at time of repayment
-CMHC will be responsible for authorizing any changes to the financing terms you own the home
under until the incentive is discharged
Data driven forecast of Outcomes without TWH Strategy:
-a national average repayment after 25 years on each $100 incentive will be $273
-up to a 10% reduction in lifetime tax free capital gains on house price growth
-quality improvements to the home will elevate the required payback beyond expected cost and reduce tax free gains
It is not unlikely some participants in this program who access $50,000 of Incentive will be required to repay in excess of
$215,000 when the payment is due 25 years after the day they first moved in. This is Tax FREE money lost through the program.
-a national average repayment after 25 years on each $100 incentive will be $273
-up to a 10% reduction in lifetime tax free capital gains on house price growth
-quality improvements to the home will elevate the required payback beyond expected cost and reduce tax free gains
It is not unlikely some participants in this program who access $50,000 of Incentive will be required to repay in excess of
$215,000 when the payment is due 25 years after the day they first moved in. This is Tax FREE money lost through the program.