Are you in the market for a First Time Homebuyer Mortgage? A First Time Homebuyers Mortgage has its advantages. The government offers you programs to assist you in making the process easier as well as more affordable.


First-Time Homebuyer Incentive

The First Time Homebuyer Incentive assists you by reducing your monthly mortgage payments making your home more affordable.

The Government of Canada will secure a 5 – 10% equity in your home.  What's more, there are no payments required for their portion of the equity.  The equity is paid back upon the sale of the house or after 25 years, whichever comes first.

If this is a program you may be interested in, contact me for further information.  Qualifying guidelines can be reviewed at the Canadian Housing and Mortgage Corporation.


Homebuyers Plan

The Homebuyers Plan will allow a First Time Home-buyer to borrow up to $25,000 from your RRSP for a down payment.  Furthermore, your withdrawal is tax-free, however, must be paid back within a specific period to avoid paying the taxes.  If you are purchasing with another individual who is also a first-time homebuyer, you can each borrow from your RRSPs for a total of $50,000. 

For more specific details, contact me or qualifying guidelines can be reviewed at Revenue Canada.


Property Transfer Tax Exemption

 In BC, property transfer tax is payable when a property is purchased. In addition. as a first-time homebuyer, you are eligible for an exemption up to a purchase price of $500,000.   It is calculated at 1% on the first $200,000, 2% of the purchase price over $200,000 and 3% on the purchase price over $2,000,000. 

For more specific details on a First Time Homebuyers Mortgage, contact me or qualifying guidelines can be reviewed at Government of Canada Taxation Department. 

Contact Gitta today at 250-462-4482 for more information!


Begin your Application Today

The First-Time Home Buyer Mortgage,� facilitated by a mortgage broker, serves as a valuable CMHC program to assist qualifying first-time homebuyers.� It effectively manages their monthly mortgage payments without undue financial strain. In collaboration with CMHC, this initiative introduces a shared-equity mortgage, offering varying percentages depending on the nature of the purchase:

  • 5% or 10% for a first-time buyer’s acquisition 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 acquisition of a new or resale mobile/manufactured home.
Shared Equity

This shared-equity model ensures CMHC participation in both potential gains and losses. This has a capped maximum gain or loss of 8% per annum (non-compounded) on the Incentive amount from the date of advance to the time of repayment.

Borrowers can potentially reduce their required down payment, resulting in a smaller mortgage amount and subsequently lower monthly costs.


Repayment of the Incentive is contingent upon the home’s market value at the time of repayment, equivalent to the initial percentage (e.g., 5% or 10%) of the original home value used to determine the Incentive. The maximum repayment amount is determined by:

  • (i) The Incentive plus a maximum gain of 8% per annum (non-compounded) if the home’s value has appreciated.
  • (ii) The Incentive minus a maximum loss of 8% per annum (non-compounded) if the home’s value has depreciated.

The Incentive is scheduled for repayment after 25 years or upon the sale of the property, whichever occurs first. Importantly, homebuyers have the flexibility to repay the Incentive in full before the designated period without incurring any pre-payment penalties. Mortgage brokers play a key role in guiding homebuyers through the intricacies of this Incentive, ensuring optimal terms and facilitating a smoother overall process.

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