Update From CMHC on First Time Home Buyer Incentive

We had a brief update from CMHC this morning on their First Home Buyer Incentive plan. First Time Home Buyer Incentive Program Offered by CMHC This program is only available to borrowers whose household income is less than $120,000 The maximum purchase price can not exceed $560,000 If the borrower comes up with at least a 5% downpayment the government will provide an interest free loan of 5% on resale homes and up to 10% on new homes. In exchange for the equity CMHC is providing they take advantage of any increase in home value and they will also absorb any decrease in home value to the same percentage as they have in the home, ie either 5% or 10% The loan must be paid back within 25 years or if the buyers sells before that. Applications will be accepted as of September 2nd for home sales that do not close any earlier than November 1st The big advantage here is that you are getting an interest free loan equal to 5% (10% if a new home) of the purchase price for up to 25 years.