• Do you know new rules have changed for Making Housing more Affordable:

First-Time Home Buyer Initiative ( FTHBI ) ! 

Precise details of how the program works won't come out until later in the fall or September 2019 !  

Improving Affordability Today: Support for First-Time Home Buyers

Ottawa, April 4, 2019

To help make homeownership more affordable for first-time home buyers, Budget 2019 introduces the First-Time Home Buyer Incentive.

  • The Incentive would allow eligible first-time home buyers who have the minimum down payment for an insured mortgage to apply to finance a portion of their home purchase through a shared equity mortgage with Canada Mortgage and Housing Corporation (CMHC).
  • It is expected that approximately 100,000 first-time home buyers would be able to benefit from the Incentive over the next three years.
  • Since no ongoing payments would be required with the Incentive, Canadian families would have lower monthly mortgage payments. For example, if a borrower purchases a new $400,000 home with a 5 percent down payment and a 10 percent CMHC shared equity mortgage ($40,000), the borrower’s total mortgage size would be reduced from $380,000 to $340,000, reducing the borrower’s monthly mortgage costs by as much as $228 per month. Terms and conditions for the First-Time Home Buyer Incentive would be released by CMHC.
  • CMHC would offer qualified first-time home buyers a 10 percent shared equity mortgage for a newly constructed home or a 5 percent shared equity mortgage for an existing home. This larger shared equity mortgage for newly constructed homes could help encourage the home construction needed to address some of the housing supply shortages in Canada, particularly in our largest cities.
  • The First-Time Home Buyer Incentive would include eligibility criteria to ensure that the program helps those with legitimate needs while ensuring that participants are able to afford the homes they purchase. The Incentive would be available to first-time home buyers with household incomes under $120,000 per year. At the same time, participants’ insured mortgage and the Incentive amount cannot be greater than four times the participants’ annual household incomes.

Budget 2019 also proposes to increase the Home Buyers’ Plan withdrawal limit from $25,000 to $35,000, providing first-time home buyers with greater access to their Registered Retirement Savings Plan (RRSP) savings to buy a home.

Precise details of how the program works won't come out until later in the fall, but today the government provided a rough breakdown of how it might work for a prospective buyer. If a first-time buyer wants to get a home that costs $400,000, they'd have to come up with a $20,000 down payment, under both the new rules and the old ones.

Normally, they'd have to take out a loan for $380,000 to cover the rest of the purchase price — but under the new program (if it's a newly constructed home), CMHC could kick in $40,000 toward the purchase price, in exchange for a 10 percent stake in the home.

That brings the buyer's mortgage down to just $340,000 for the home, instead of $380,000. On a standard mortgage at 3.5 percent interest, that translates into a monthly mortgage payment more than $200 lower than it would have been for the 25-year life of the loan. That's more than $2,700 a year in potential savings.

The catch is that the homeowner eventually has to pay back the CMHC's stake in the property — but not until they sell (or sooner, but only if they want to).

* Do you know Canada's Mortgage New rules have changed effective February 15th 2016?  How do they affect you?    

If someone looking to buy a $750,000 home would need to have a minimum down payment of $50,000, which is what you get when you add five per cent of $500,000 and 10 per cent of the remaining $250,000.

For a $700,000 home:

5% on the first $5000,000 is $25,000

10% on the next $200,000 is 20,000

The total is $45,000. It's increase of $10,000

*Do you know new law in Quebec new lease forms Comes into Force on February 24, 2015?

Under this new law, beginning on February 24, 2015 it will be forbidden to use  old lease form. As of February 24, 2015,comes into force the regulation amending the   Regulation respecting mandatory lease forms and the particulars of a notice to a new lessee. As of that date, lessors will no longer be allowed to use the current/old forms and it will be mandatory for them to use the new leases for all new lessees.

*Do you know new Canadian Anti-Spam Law Comes into Force on July 1, 2014?

Under this new Canadian law, beginning on July 1st, 2014 it will be forbidden to send commercial electronic messages (CEM)?


 * Do you know Canada's CMHC Purchase Home Mortgage Insurance Premiums (Rate / %) rules have changed May 1st, 2014? How do they affect you?     

" Effective May 1st, 2014 CMHC Purchase (Owner occupied 1 – 4 unit) for all loan-to-value ranges.!! " 
* Do you know Canada's Mortgage New rules have changed effective July 10th 2012?  How do they affect you? 
The biggest change of all is the maximum amortization period for government-backed insured mortgages to 25 years from 30 years basically forcing borrowers to pay back their debts sooner.
For the Refinance:  Lenders can only issue home equity loans up to a maximum of 85% of a property's value (down from 80% to 85%). If anyone wanting to buy a home worth more than $1 million, for instance, must now have a down payment of at least $200,000 dollars.
* Do you know how to Calculation of the Property Transfer Tax?
The fee is calculated on the highest amount of three amounts of the tax base and follows the following scale:
* 0.5% on the amount up to $50,000 * 1.0% on the amount between $50,001 and $250,000    Province of Quebec, out of Montreal: 1.5% on the amount exceeding $250,001    For Montreal (since January 26th 2010):
 * 1.5% on the amount from $250,001 to $500,000  * 2% on the amount exceeding $500,001
- It's good to know if you are buying or selling property.
- It’s time for need to know about mortgage with right advice.
- I can assist you to find a mortgage with a better rate.  
Please call today at  514-654-8890  or send an e-mail at:emdadul@bell.net for in or in details !!