Do you still not have a house? Waiting for money? Well, that makes sense. But wait, you may not need as much as you think. There are many benefits offered to first-time home buyers, so it may be time to start planning your home purchase.

How does the first home buyer incentive work?

For qualified Edmonton first time home buyers, the government pays 5% or 10% of the value of the home, depending on the type of property. A loan is like a second mortgage on your home. The amount of the first loan must exceed 80% of the property's value and include mortgage insurance. Eligible for Canadian, CMHC or Sagen licenses. These incentives are interest-free and can be paid at any time without penalty. However, in the case of approved loans, the amount is repaid when the house is sold or after 25 years, whichever comes first, calculated based on the first percent interest and the current market value of your home.

When do I have to pay the incentive?

As a Vancouver first time home buyer, you must repay the incentive in full when you sell your home or after 25 years, whichever comes first.

However, you can choose to pay the incentive early without penalty.

How much do I have to pay back?

Since the incentive is a shared loan, which means that the government shares in the increase or decrease in the value of your home, you will repay the first payment as a percentage

Payment - whether the price has increased or decreased. Note that the percentage of return is the ratio of 8% profit or loss over years (not confusing).

For example, if you get a 5% down payment on a $500,000 home, that means the government is lending you $25,000. Then:

If your home sells for $600,000 or increases in value by $600,000 at the end of 25 years (whichever comes first), you must repay 5% of the current market value, but it is $30,000.

However, if the market value of your home falls below $400,000, you must repay 5% or $20,000.