Acquaintance looking into 1st time home buyer grant from CMHC

sffpcgtx wrote: ↑ 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?

daking555 wrote: ↑ Useless program.

Yes, government loans some money to increase the downpayment. They take an equity stake in your property which YOU are responsible for all upkeep, taxes, costs etc. They walk away with profits....

It's not worth giving up equity

kangarooz wrote: ↑ Equity loans suck, if you dont think the market will go up dont buy. If you think the market will go up you are more than likely to come out ahead with PMI instead if you are holding the property long term.

sffpcgtx wrote: ↑ Elaborate

kangarooz wrote: ↑ Google... jokes it should be your only other option if you dont have 20% down.