First time Home Buyers Incentive Program

The FTHBI Program allows eligible first-time homebuyers, who have the minimum down payment for an insured mortgage, to apply to finance an additional portion of their down payment.

This can be done through an incentive of either 5% or 10% secured by a shared equity mortgage with the Government of Canada (registered as a second mortgage). Purchase closing date must be on or after November 1, 2019.

Incentive options:

. 5% for a purchase of a re-sale home; or

. 5% or 10% (customer choice) for purchase of a new construction.

Borrowing Qualifications:

.  Canadian citizen or permanent resident or nonpermanent resident who is legally authorized to work in Canada.

. At least one borrower must be a first-time home buyer.

. Property must be located in Canada – owner occupied with year-round occupancy.

.  Total qualifying annual income cannot exceed $120,000 (all borrowers).

Down Payment:

. Must have a minimum down payment of 5% from traditional sources – total down payment with the Incentive must be less than 20%.

Maximum Purchase Price:

. The purchase price cannot exceed 4 times the qualifying annual income plus total down payment (minimum down payment plus Incentive amount) § Total borrowing (insured mortgage amount + Incentive amount) cannot exceed 4 times the total qualifying annual income.

Loan Repayment:

.  Repayment is required after 25 years of when the property is sold, whichever comes first.

. Repayment based on either 5% or 10% of the fair market value of the property as assessed at the time of repayment.

Documentation Requirements:

. Signed government consent form, found on the government’s dedicated website must be included with the application.

What’s required and how you can benefit

Every money lender has unique mortgage guidelines for self-employed home buyers.

Designed for those without a traditional “proof of income”, these guidelines are applied to:

• Business owners
• Self-employed individuals
• Contract and commission workers

There are two general types of self-employed mortgage programs:

1. Income Qualified

The lender requires Revenue Canada “Notices of Assessment” to determine net income.

2. Stated Income

The lender requires alternative confirmation of income: bank statements, invoices, etc.

In all cases, lenders may also require proof you have no outstanding taxes still owed Revenue Canada.

Despite popular misconceptions, self-employed home buyers may still qualify for the lowest available interest rates.

Find out how you can, too!

Getting pre-approved for your mortgage gives you the flexibility you need to find the best deal on a new home.

Step 1: Personal Consultation

We will help you:

• Determine if you are financially prepared
• Consider a variety of mortgage products
• Review down payments, future payments, and affordability

Step 2: Your Application

We’ll guide you through the application process:

• Listing your employment record, assets and liabilities
• Verifying your down payment
• Obtaining a credit check

Step 3: Pre-Approval

Discover the benefits of pre-qualification. We’ll help you:

• Choose the mortgage that works best for you
• Learn about pre-payments, amortization, and more
• Secure your application against potentially rising interest rates

New to Canada and need a mortgage? We speak your language!

Even without an established Canadian credit history, new immigrants may still qualify for a mortgage. It all depends on who you’re talking to.

As a newly landed immigrant, you may be required to provide:

• An international credit bureau report
• A bank reference from your country of origin
• Confirmation of your landing date or legal status
• Proof of income or employment (if applicable)

We’ll help you get organized, and the best possible rates and develop a payment plan that fits your budget. You will gain home ownership in Canada in a hassle-free manner.

Funding House, where money lenders compete for your business

There are two types of repeat real-estate buyers:

• Those moving to a new home or “principal residence”
• Those investing in real estate to build or preserve wealth

1. Principal Residence

Smart home-buyers weigh the costs and benefits of various mortgage “features.” Portability is one that lets you transfer your existing mortgage to a new home, thus saving the costs of cancellation.

Money lenders are more willing to negotiate rates and features when they’re competing for your business. So, before shopping for a new home, let us pre-arrange your mortgage.

We’ll help you:

• Get the best possible rates and features
• Arrange affordable monthly payments
• Integrate your mortgage into an overall financial plan

2. Build or Preserve Wealth

Real estate investors often purchase multiple properties with the goal of generating:

• Immediate new income (rental revenues)
• Future income (capital appreciation)
• A combination of both

Because of complexity, special mortgage products have been designed specifically for each application.

Enlisting the services of a mortgage professional is vital. We’ll help you:

• Understand the costs and benefits of multiple mortgage products and options
• Get the best possible rates and payments
• Calculate affordability and profit
• Arrange financing

Mortgage rejection can happen to anyone

Based on your credit history, your bank may:

• Reject your mortgage application
• Charge high interest rates
• Refuse to negotiate

No problem, we have custom solutions for each of these situations.

• Newly self-employed?
• Short employment?
• Poor credit rating?

Don’t worry, we have the experience and connections you need. We’ll help you repair your credit rating, analyze your financial situation and set goals.

With your new improved credit rating, we’ll make sure you get the lowest possible rates, affordable payments and a mortgage that works for you.