Understanding 5 key facts about the FTHB expansions
In this video, Chris Molder, a Toronto mortgage broker, goes into detail about the changes to the First-Time Home Buyer program, and 5 things everyone needs to know about the new program expansions.
5 things to know about the FTHB expansions
Don’t feel like watching? Find the full transcript below!
If you’re thinking about buying your first home and are curious about how the FTHB program might help, this video is for you!
5 things to know about the new FTHB program
#1 New maximum household income
Chris: [00:00:00] This is five things to know about the expanded First-Time Home Buyers privilege in 2021. The first thing is that the maximum income per household has expanded from $120,000 to $150,000.
#2 Maximum loan amount expansions
Chris: [00:00:16] Number two, the maximum loan amount has been expanded from four times household income to four and a half times household income. So that means that if you are maxing this program out at a household income of $150,000 times 4.5, that’s a maximum mortgage of $675,000, which for the city of Toronto is a realistic number to jump into a condo.
#3 Physical location requirements
Chris: [00:00:45] Number three is the geographical area. So this program is not country-wide, but regional, specifically for the Greater Vancouver Area and the Greater Toronto Area. And so what defines that border is the GTA census area, which is quite a wide geographical area, as you can see from this image.
#4 Understanding the full program
Chris: [00:01:07] Coming in at number four is the actual program itself. So the First-Time Home Buyers program is really a loan that is offered by the government to help contribute to the down payment. This program is for buyers who have less than 20% down payment. And in essence, the government will provide up to 5% of the purchase price as a loan for resale homes or condominiums. And if you’re buying a new home or condominium from the builder, they will provide up to 10% of the purchase price as a loan.
#5 Paying back the loan
Chris: [00:01:45] Number five is the repayment of the loan. So this is a loan and it does need to eventually be repaid. There are no monthly payments. So how is the loan actually repaid? Well, there are three main events that can trigger the requirement for the loan to be repaid, which are the sale of the property, the arrival at the 25th anniversary of getting the loan – which is a long way out – highly unlikely. Or number three, a refinancing of the mortgage. When that happens, the value of your home is established and the loan is repaid based on 5% of the increased value of your home. If you’d like to find out more about the First-Time Home Buyer privilege introduced by the federal government, please visit placetocallhome.ca. There you can find information about eligibility, the exact program and what the geographical areas are. I invite you to contact myself, as a mortgage broker, and I can guide you through the different steps to make sure that you are eligible for that program.
Looking for more information?
If you have any questions about how this program might help you buy a home, I’m just a phone call or email away. My name is Chris Molder. I am a Toronto mortgage broker and invite you to get in touch anytime. Thanks for stopping by. Till next time.
You can contact me now to get started. Book a call directly via my calendar below, or get in touch with me here.
