First Time Home Buyer Toronto
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.