First-Time Home Buyer Incentive in Edmonton

The First-Time Home Buyer Incentive in Edmonton (FTHBI) is a shared-equity mortgage with the Government of Canada that helps qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens. The FTHBI 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.

The effect of the larger down payment is a smaller mortgage, and, ultimately, lower monthly costs.

To be eligible for the first-time home buyer incentive in Edmonton, you must meet the following criteria:

• You must be a first-time homebuyer.
• You must have a qualified annual income of $120,000 or less.
• The insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual income.
• You must purchase a home that is insured by the Canada Mortgage and Housing Corporation (CMHC).

If you are eligible for the FTHBI, you will need to apply through your lender. The lender will assess your eligibility and, if approved, will provide you with a mortgage that includes the FTHBI.

The first-time home buyer incentive in Edmonton is a great option for first-time homebuyers who are looking to reduce their monthly mortgage payments. However, it is important to understand the terms and conditions of the program before you apply.

Here are some of the key things to keep in mind:

• You will have to repay the incentive amount, plus interest, after 25 years, or when you sell the property, whichever comes first.
• If you sell the property before 25 years, you will have to repay a portion of the incentive amount based on the appreciation of the property.
• If the value of the property has depreciated, you will only have to repay the incentive amount minus a maximum loss of 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment.

The first-time home buyer incentive in Edmonton can be a great way to make homeownership more affordable, but it is important to weigh the pros and cons before you decide if it is right for you.