Real Estate

Acquaintance looking into 1st time home buyer grant from CMHC

  • Last Updated:
  • Mar 22nd, 2022 4:06 pm
Mar 3, 2021
707 posts

Acquaintance looking into 1st time home buyer grant from CMHC

A work colleague mentions that they qualify for 500k mortgage based on income...they have 5% as downpayment. i.e.

House they're looking at is 500k
person has 5% DP
Debt: none
Work: secure
Salary: 110k

How can the 1st tme home buyer grant help this person? Understanding that CMHC will be entitled to 5%, 10% of the sale/appraisal when sold or in 25yrs.

Pros and cons please.....and is it even worth going down this route, and what's the process involved?
2 replies
Sr. Member
User avatar
Jan 14, 2007
668 posts
GTA North
Only looked at this because you posted and it intrigued me.

Lower payments due to less borrowing
If property falls in value you pay back less
Payback will be in future dollars
Can't be used by investors to buy a rental property
Can't be used to buy 3 season cottage

Repay on sale price, not selling price after adjustments
Higher fees on set up because you have two mortgages registered
Porting the mortgage will trigger repayment
Partial release of security will trigger repayment
If you buy with a Co-borrower and you break-up it will trigger a repayment
Causes an already heated housing market with low supply to have greater demand and more FOMO


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