How Does the New Shared Equity Mortgage Plan Effect You?
As of September 2nd, first time home buyers can benefit from a new shared-equity plan with the Canada Mortgage and Housing Corporation.
How does the new shared equity mortgage plan effect you?
- Government will advance an interest-free loan of up to five per cent on an existing home and up to 10 per cent for a new home, in exchange for an equivalent equity stake in the property.
- Buyers must repay after 25 years or if they sell
- Independent appraisal would establish amount of repayment – CMHC shares in gains/losses
- Buyers must have household income of less than $120,000
- Applications accepted on first-come, first-serve basis
If you know a first-time buyer who needs help understanding this new program call me today!
- Increase in qualified buyers who have been accepted into the CMHC program
- Potential increase in new buyers looking in a higher price range
- Increased opportunity to capitalize on your home’s equity