Feds unveil first-time home buyers program in Pickering
Wednesday Jul 10th, 2019Share
Federal Minister of Families, Children and Social Development Jean-Yves Duclos was in Pickering Tuesday to unveil a new program to help first-time home buyers save on mortgage payments.
Through the ‘First-Time Homebuyer Incentive,’ the federal government will finance a portion of the cost of a home through a shared equity mortgage.
Ottawa will help cover five per cent of the price of an existing home, and up to ten per cent of a newly built home.
The program will be available to first-time buyers who earn less than $120,000 per year and already have enough money for a minimum down payment.
Families taking part in the program don’t have to make on-going repayments on the incentive amount, which doesn’t collect interest.
However, families must repay whatever amount they receive within 25 years or when they sell the home, whichever comes first.
Duclos says the program is aimed at helping “struggling, typically younger, middle class families that would otherwise not be able to stay (in their communities).”
“In Pickering we have a wonderful community,” said Duclos. “But younger couples and their children sometimes see great difficulty achieving their dream of owning a home.”
Pickering-Uxbridge MP Jennifer O’Connell says one of the main concerns across the GTA is the rising cost of housing.
“Even families with good middle-class incomes are struggling to make ends meet,” said O’Connell.
Duclos says first-time buyers will get more assistance if they are purchasing a new home because the government “wants to encourage developers to keep investing in the type of new homes that are affordable.”
The program launches September 2, click here for more information.