Ottawa’s First Time Home Buyer Incentive Program launches in September and a Prince George Realtor believes it could be beneficial to the northern capital.
It is limited to people who earn under $120,000 a year, which could also see the Canada Mortgage Housing Corporation contribute up to 10% of the price.
Bob Quinlan with RE/MAX Realty told MYPGNOW.com this could be viewed as a loop-hole for potential buyers who have been previously stymied by the new stress-test rules.
“Where it will really help is the people who are struggling to get to the $350 to 400,000 range, which is really hot in Prince George and in that type of a price range they are committing to less but they are into that type of a property.”
He believes the new program will have its fair share of benefits.
“It may take people into higher priced properties because naturally when people have more money they want to spend it and if they have more available to them at a borrowing power then they can see a nicer home that they can now afford.”
The only requirement is that the total value of the mortgage plus the CMHC’s portion doesn’t exceed $480,000, which effectively means the program is available for properties worth a maximum of $565,000.
However, the program must be paid back within 25 years of if the buyer sells before that – but there is no financial penalty for buying the CMHC out of its stake.
Applications will be accepted on September 2nd for home sales that will close no earlier than November 1st.