03/21/2021
The government is earmarking $1.25B over 3 years for something it's calling a 'shared equity mortgage’.
The 2019 federal budget includes a tantalizing pitch for prospective first-time homebuyers — one that could see Canada's housing agency contribute up to 10 per cent of the purchase price of a home and bring down the mortgage load for borrowers.
• In order to qualify, an applicant must have a household income of less than $120,000 per year and be able to come up with a five per cent down payment
• It's more like an almost interest-free loan — one where the repayment plan doesn't require any payback until years in the future.
• The program caps out at four times the applicant's annual income, which means it can only help homeowners looking to buy properties where the mortgage value plus the CMHC loan don't exceed $480,000.
• But if a would-be buyer meets the conditions described above, under the program, the CMHC would kick in up to 10 per cent of the value of a newly built home, or five per cent of the value of a resale.
CBC News • Posted: Mar 19, 2019
