Canada’s First Time Home Buyer Incentive (FTHBI) provides funding assistance and a down-payment assistance loan to middle-class homebuyers who have no experience availing their own property before. The program reduces monthly payments by decreasing the interest rate and extending the length of the mortgage. This allows first-time buyers to own homes with lower monthly payments than they could choose for themselves, and it also lowers property taxes by increasing the appraisal value.
The program is intended to level the playing field for first-time homeowners who could not otherwise afford it, allowing them to compete with other home buyers. It is expected to help at least 40,000 buyers over the coming years as it is designed to be long-lasting and sustainable.
The program was first launched in 2019 and has since garnered the support and inquiry of countless middle-class Canadians who are hoping to acquire their dream home without spending too much of their savings.
Eligibility
First Time Home Buyer Incentive was designed for first-time buyers who have no experience owning a residential property. Applicants must be 18 years of age or older and not be a member of a household that already owns a home in Canada.
They also need to be Canadian citizens or permanent residents. The property is expected to be purchased with funds from the applicant’s own resources or that of their spouse or common-law partner.
Buyers can be owner-occupiers or investors and must intend to occupy the property. It is expected that the applicants are not principal residence at the time of application too.
Keep in mind that applicants are not required to have a minimum amount of time in Canada, and they do not need to have been previously employed in Canada.
How To Apply
To apply for the program, the buyer must apply through a participating financial institution.
When applying, the buyer must provide the financial institution with several documents. These include:
- A copy of the applicant’s birth certificate (if applicable),
- A copy of their previous Canadian passport,
- A copy of their previous Canadian citizenship certificate,
- A copy of their previous Canadian Permanent Resident Card, or
- Proof of Canadian citizenship or permanent residence.
Applicants must have their income tax returns certified by an authorized representative of the Canada Revenue Agency, Canada Border Services Agency, or Citizenship and Immigration Canada.
Some applicants may also require additional documentation such as a Social Insurance Number, and they must verify their identity with a valid Driver’s License or a piece of photo identification.
Another main requirement for the buyer, the first-time buyer’s spouse or common-law partner, and the first-time buyer’s co-applicant (if any) is to visit the financial institution together, as it is part of the primary application process.
The financial institution will fill out the necessary application forms to apply for the program, after which an application will be submitted to the local Canadian Mortgage and Housing Corporation office who will arrange for an appraisal.
Conclusion
Overall, these are just some of the most vital information about Canada’s First Time Home Buyer Incentive (FTHBI). If you happen to fit the eligibility criteria, feel free to inquire further about the other required paperwork. Not only will knowing them help you familiarize yourself with the appropriate deliverables, but you will also get a general idea of what to expect out of the process.
Be sure to know the essential details by heart, and you may just get that well-needed loan for your dream home in no time.
With that being said, if you are looking for the best mortgage specialist in Ottawa that would help you with your FTHBI, look no further than our expertise here at Ottawa Mortgage Services. We provide mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. We also help with refinancing, pre-approvals, and debt consolidation. Contact us today and let us discuss all your available financing options.
