A new CMHC first time home buyers down payment program to assist with the down payment is launching soon. The program will begin in September for mortgages closing November onward.
The Liberal government laid out the details of the $1.25 billion program this past Monday.
The program is to be capped for homes no more then $565,000. Applications are being accepted Sept 2, 2019 but the program is based on first come, first served.
The government is assisting with up to 5% of the down payment on resale homes and up to 10% of the down payment on new homes. Also, applicants must have a household income of under $120,000.
The funds are given to buyers interest free. The funds will need to be paid back as a percentage of the sale price once the home is sold. Or if the home is kept for the long term, then the funds must be paid back within 25 years.
100,000 Canadians are projected to be assisted with the new program.