Home Buyers’ Plan (HBP) 

The Home Buyers’ Plan is an effective means for first time home buyers to access funds for a down payment. This plan allows withdrawals of up to $35,000 per person or $70,000 per couple from a registered retirement savings plan to aid in the buying or building of a qualified home.  

To qualify for this program and to be considered a ‘first time home buyer’, you must have NOT occupied a home that you or your current spouse or common law partner ever owned.  

To learn more about the HBP and how it can help you, contact our team today or visit the Government of Canada program website here. 

Gifted Down Payments (non-borrowed funds) 

If you are a first time home buyer, the funds for your down payment can be provided by way of a financial gift, assuming that the following conditions are met: 

• The lender can verify that the funds are in the borrowers bank account at least 15 days prior to closing. 
• The lender is satisfied that the money is a genuine gift. 
• The donor is an immediate family member.

Contact the Krepski Mortgage Team today to learn more about Gifted Down Payments.  

First-Time Home Buyer Incentive Plan (FHBIP)/CMHC 

The FHBIP can help you purchase your new home. This incentive aims to assist first-time home buyers without adding to their financial burdens. There are no additional monthly payments. Eligible first-time home buyers who have the minimum down payment for an insured mortgage can apply to finance a portion of their home purchase through a shared equity mortgage with the Government of Canada.  

To qualify for this incentive, the following conditions must be met:  

• You need to have the minimum down payment to be eligible. 
• Your maximum qualifying income for the household cannot be any more than $120,000. 
• Your total borrowing is limited to four times the qualifying income.  

If you meet these criteria, you can apply for a 5% of 10% shared equity mortgage with the Government of Canada, whereby the government shares in both the upside and the downside of the property value.  

This particular incentive enables first-time home buyers’ to reduce their monthly mortgage payments without increasing their overall down payment. It is not interest bearing and does not require ongoing payments. The FTHBI will offer 5% for a first-time home buyer’s purchase of a resale home and 5% or 10% for a first-time home buyers’ purchase of a new construction home.  

Contact the Krepski Mortgage Team today to learn how we can help you with the First Time Home Buyer Incentive Plan.