First and foremost this program is not intended to help clients qualify to get into a house (as advertised), but rather all it does is lower their monthly payments…
After getting a flooded inbox of emails from first time home buyers looking for additional information about the first time home buyers incentive, we decided to sign up for a meeting to understand the ins and outs of this new program. We thought we would share our findings with you for those who are interested…
We are sad to announce it allows clients to qualify for LESS than what we can qualify them for without the incentive!
Using the incentive, a first time home buyer with a $25,000 downpayment and an annual income of $90,000, the maximum purchase price allowed will be $385,000 (4x their salary + downpayment).
By not using the incentive, a first time home buyer with the same income and downpayment, can qualify for a purchase of up to $440,000.
Not to mention the government won’t own a piece of their house.
Also, they are required to pay the entire loan amount back in FULL when their house sells or after 25 years. No payment plan allowed.
While it sounds like the government is attempting to make it easier for first time home buyers to get into a home, it actually makes it harder than going to a Mortgage Broker to get qualified.