01 Dec 2020
Quick!
Tell me.
What’s the average condo price today in 416?
By doing a quick google search I found out it is $622,000 as of October 2020.
(So?)
So..
The First-Time Home Buyer Incentive has gone UP from $505,000 to $722,000 and the income:debt ratio has gone up from 4x income to 4.5x income for Toronto, Victoria and Vancouver properties only.
 
Why did I ask about the average price of condos? Well, it is 1. The market that’s having the most difficulty and 2. The lowest hanging fruit, exactly $100,000 UNDER the maximum limit of this program!

I am not for one second thinking that the Liberal Government wants to prop up Toronto Condos ONLY.

What I am saying is that this will only HELP support this market and entice more first-time buyers INTO it.
This announcement just broke on Twitter so I don’t have all of the information handy. Specifically: is Toronto 416-only or GTA? Stay tuned!
But in the meantime, although this program has been extremely unpopular amongst borrowers (Only 2000 people have even used it and the budget is for $1.25B) it is really exciting to see this kind of support for the Real Estate market.
A reminder on how this program works:
  • ONLY for first-time buyers of resale or pre-construction properties
  • Max 4x income allowed (Now will be 4.5)
  • You bring 5% down, CMHC “gifts/loans” you 5% with an equity share of your property’s value growth
  • No payments due except you relinquish a small % of your equity growth (and also share in the % loss if that happens)
  • Other terms and conditions apply of course
Let me know if you have ANY questions about the above changes and I’ll find answers.
And, of course, anyone you think might be perfect for this program.
Thanks for reading!

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