First Time Home Buyer Toronto

Owning a home means you do not have to endure the rules and regulations you get from a rented apartment or condo. Property ownership also increases your net worth, making you more bankable and it improves your credit score. Other advantages of buying your own home are that mortgage insurance will pay for your mortgage should you lose your job or get involved in a severe accident and you can always lease out the home should you get a job elsewhere. The federal government recently launched the new First-Time Home Buyer Incentive (FTHBI) which is a program aimed at making the home buying process a bit easier for millennials who make the bulk of first time home buyers. The program which kicked off on 1st November 2019 is meant to stop first-time homebuyers from being overly pressed by monthly mortgage payments.

FTHBI is meant for home buyers with an annual household income of less than $120,000. The amortization period must be less than 25 years or on home sale. FTHBI gives first-time homebuyers up to 10% of the cost of the home from the government’s kitty totaling $1.25 billion dollars over the next 3 years. With FTHBI, the government takes a hit if the property decreases in value when being sold and it benefits if there is a hike in the property price. For a family looking into a $500,000 with a $25,000 down payment, the program could save them up to $286 per month (about $3,430 a year), depending on the type of home and the market. However, to qualify for FTHBI, the $120,000 limit will not get a house in Toronto where the average price of a home is $982,427 according to a Bloomberg report (the mortgage cannot exceed 4 times the minimum household income, or $480,000. This limits first-time homeowners to buying condos.

We help first time home buyers navigate the murky Toronto mortgage lending scene. We will help you find a lender who is offering the best possible package. There are many lenders in Toronto and making a choice can be confusing for a first-time homeowner. Going directly to a lender is not advisable since the lender’s broker has vested interest (a commission), meaning he/she will push the mortgage even if it does not suit you and he/she will try to have you on the highest possible interest rate.
Once we’ve identified a lender, we will help you to complete the application documents and to take them to the lender. Once accepted and processed, we will call FTHBI (1-833-974-0963) and provide the name of your notary or lawyer and your information.