Did you know the Canadian government made changes to the First-Time Home Buyers Incentive (FTHBI) last week? Discover how the changes made on May 3rd, 2021, will ease the pressure on Canadians looking to enter the housing market in three key metropolitan areas below.
What has Changed?
The Department of Finance along with CMHC (Canada Mortgage and Housing Corporation) have implemented adjustments to the FTHBI so that those who qualify will feel less debt load in a housing market that continues to soar.
Specifically, the household income threshold to qualify has been raised from $120,000 to $150,000 and the borrowers may borrow up to 4.5 times their income (up from 4). To put that into perspective, First-time buyers were limited to a purchase price of approximately $550,000 prior to the changes. Now, that number has been bumped up to just over $720,000.
Who Does This Effect?
The FTHBI changes are applicable ONLY to those looking to buy in the “Census Metropolitan Areas” of Toronto, Vancouver & Victoria. These are areas where the average house price has climbed to $716,000. The government realizes the challenges of those looking to purchase their first home in these cities and is striving to make it more attainable for those that already qualify.
The overall goal is to lower the monthly payments of new homeowners in Canada’s major cities by partnering ownership with the government. While this incentive is a step closer towards making homeownership an attainable goal for some, support for first-time home buyers in the booming areas of Southern Ontario’s smaller communities is still needed.
GET ASSISTANCE WITH YOUR PURCHASE
Is buying your first home one of your current goals? Gerard of GerardBuckley.ca Mortgage Broker and his team offer unmatched service and they specialize in client education. Talk to Gerard and learn what you need for a successful purchase today! 866-496-4028.
Have you completed a prequalification yet? Use this tool to get prepared and see where you stand.
