Below are details of the more common myths to give you a better idea of the real truth about FTHBI:
๐ ๐๐๐ต: The incentive is free money to a qualified first-time buyer. ๐๐ฎ๐ฐ๐: The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first.
๐ ๐๐๐ต: The shared equity mortgage means that the Incentive is interest bearing. ๐๐ฎ๐ฐ๐: The shared equity mortgage means that the government shares in the upside and downside of the property value.
๐ ๐๐๐ต: There is a repayment penalty. ๐๐ฎ๐ฐ๐: The homebuyer can also repay the Incentive in full any time without a pre-payment penalty.
๐ ๐๐๐ต: Incentive is to help first-time homebuyers purchase their first home with the intent to invest. ๐๐ฎ๐ฐ๐: It is only for the primary residence, not for investment properties.
๐ ๐๐๐ต: Only Canadian citizens and permanent residents are eligible borrowers. ๐๐ฎ๐ฐ๐: Non-permanent residents who are legally authorized to work in Canada are also eligible.
๐ ๐๐๐ต: FTHBI increases Monthly Mortgage Payments. ๐๐ฎ๐ฐ๐: FTHBI reduces Monthly Mortgage Payments, without increasing the amount that borrowers must save for a down payment.
This short video touches on some key features of FTHBI:
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