A shared equity mortgage, the First-Time Home Buyer Incentive, provides support for one of the largest investments of your life. The Government of Canada will share in both the upside and downside of the property value. To relieve some of the financial burdens, eligible first-time home buyers can finance a portion of their home purchase, as long as they have the minimum down payment for an insured mortgage. The incentive can be repaid over a period of 25 years or when the property is sold, and there are no prepayment penalties. For the following home types, you can receive;
- Newly Constructed Home: five percent or ten percent for a first-time buyer’s purchase
- Existing Home (Resale): five percent for a first-time buyer’s purchase
- Mobile/Manufactured Home (New or Resale): five percent for a first-time buyer’s purchase