New First-Time Home Buyer Incentive Is Planned To Be Announced This Fall.

Canada Mortgage and Housing Corporation will help lower mortgage costs for first-time home buyers for eligible Canadians by giving up to 10% of the home price which would lower their payment. It will also help with the stress test, as applicants would have to qualify for a lower mortgage payment.

The program would work by lending 10% for buyers purchasing a newly built home and 5% for existing homes.

The Home Buyer’s Plan, which currently allows first-time buyers to take out up to $25,000 RRSP to finance the purchase of a home, will be raised to $35,000.

There are many questions that haven't been answered yet when it comes to these new incentives:
- What we haven't been told yet is how much money will go back to the housing agency.  
- Does the homeowner pay back the amount borrowed, or does CMHC get a share of the increased value of the property?
- Conversely, if the property value drops do CMHC share in the loss, or is the owner still liable for the full amount of the original loan?  
These answers are supposed to come in the fall.





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