Your Gateway to Affordable Home Ownership in Calgary with Coldwell Banker Mountain Central
Owning a home in Calgary for the first time can be both exhilarating and daunting. As Michael Newton from Coldwell Banker Mountain Central, I understand the unique challenges that you might face. That's why I'm here to guide you through the Government of Canada's First-Time Home Buyer Incentive (FTHBI) – a remarkable program that makes your dream of owning a home in Calgary more attainable.
The FTHBI is a shared-equity mortgage program with the Canadian government, designed to decrease the monthly mortgage payments for qualified first-time homebuyers. Here's how it benefits Calgary's potential homeowners:
For your purchase of a newly constructed Calgary home, you could qualify for a 5% or 10% incentive.
If you're eyeing an existing or resale home in the vibrant neighbourhoods of Calgary, a 5% incentive could be available.
Even mobile or manufactured homes, whether new or resale, nestled in Calgary's picturesque locales can qualify for a 5% incentive.
The shared-equity feature of the program means the government will partake in the potential increase or decrease in your Calgary home's value. The shared profit or loss is capped at a maximum of 8% per year (simple interest) on the incentive amount, from the date you receive the incentive until the day it's repaid.
Availing the FTHBI means you could potentially save significantly on your down payment. This leads to a smaller mortgage, and, as a result, a lighter monthly financial commitment.
Now, what about repaying the incentive?
The repayment amount is based on the market value of your Calgary home at the time of repayment. It is the same percentage (5% or 10%) of the original value of your home used to calculate the initial incentive amount. The maximum repayment amount is:
(i) If your Calgary home's value has increased, it's the incentive plus a maximum gain of 8% per year (simple interest) on the incentive amount from the date you received the funding to the repayment date.
(ii) If your Calgary home's value has dropped, it's the incentive minus a maximum loss of 8% per year (simple interest) on the incentive amount from the date you received the funding to the repayment date.
Keep in mind that the incentive must be repaid after 25 years, or when the property is sold, whichever comes first. Yet, if you wish to repay the incentive in full before the due date, you can do so without any pre-payment penalty.
As Michael Newton of Coldwell Banker Mountain Central, I believe that the FTHBI can significantly enhance your home buying journey in Calgary. Let's take the first step towards affordable homeownership in Calgary together!
