New information about CMHC's program to help First Time Home Buyers

A little bit of new news from Canada Mortgage and Housing Corporation regarding the Federal Government program to help First Time Home Buyers with a downpayment on their first purchase. The program allows for the government to provide 5% of the purchase price on existing homes and up to 10% of the purchase price on new homes. When you sell the home, this money has to be paid back. Let's say that the home goes up in value by 10% when you sell and they gave you 5% of the purchase price. The government will want the 5% back (of course) and they want you to also pay them back the percentage increase that their 5% earned. So, if you bought a home for $100,000 that went up 10% in value and they gave you $5,000 or 5% of the purchase as part of the program, you pay back $5,000 plus $500. This is the Federal Governments equity in your home. Don't worry, if home prices go the other way, and when you sell the home has gone down in value, you only have to pay back the net amount of the $5,000 after the percentage decrease in value. The program is not set to launch until September so trust that more details will follow as we pass through the summer.