We tend to always have a slight focus on first-time buyers, but now that we’re fully in spring mode, we want to shift the focus into a higher gear. For all of May, we’ll have even more tips and news for and about first-time buyers!
Spring is a busy season for the housing market. New beginnings are on everyone’s mind, the weather is getting better, and there’s usually a spike in listings and new home openings and releases. If you’re a first-time buyer considering buying a new home in the near future, then you should definitely stay tuned to our blog throughout May.
We’ll be focusing on the new home buying process, mortgage and other financial tips, home decor on a budget, and of course we’ll be highlighting any buying opportunities that arise in the Greater Toronto Area and surrounding region.
One of the biggest announcements for first-time buyers recently was the federal government’s First-Time Home Buyers Incentive, which was unveiled during the tabling of the 2019 Budget.
The FTHBI is a shared equity mortgage program for first-time buyers with household incomes of $120,000 or less. The total borrowing amount cannot exceed four times the household income, so the max home price for the program is $505,000, assuming a 5% down payment from the purchaser, which is the lowest payment required to qualify for mortgage insurance.
When a qualifying first-time buyer puts at least 5% down on a home, the Canada Mortgage and Housing Corporation will put down another 5% for a resale home or 10% for a new construction home. The interest-free loan doesn’t have to be paid back until the home is sold.
The FTHBI is controversial because many believe that it won’t have an impact in Canada’s most expensive markets like Toronto and Vancouver. But, according to the CMHC, more than 2,000 buyers would have qualified in Toronto last year, and 1,000 in Vancouver. Unfortunately, the FTHBI won’t kick in until later this year and everyone’s still waiting on more details on further qualifying parameters.
If any details about the FTHBI get announced, you can bet that we’ll be posting about it, whether it’s released this month or later this year. If done correctly, it could really make a difference for a lot of first-time buyers in the GTA.
In addition to everything mentioned above, we happen to be in touch with a first-time buyer who is moving later this month. They’re moving into a new condo in downtown Toronto, and is among the first residents in a large condo development. Throughout the month, we hope to hear about this process and experience, and share the stories with you!
Stay tuned - we have plenty of special first-time buyer features coming soon.