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31 Jul

First Time Home Owners to eligible for 30-year amortization

General

Posted by: Frank Fik

Effective August 1st, 2024, the Department of Finance will now allow homeowners purchasing a newly built property and who meet First Time Home Buyer (FTHB) criteria, the option of a 30 year amortization for insured mortgages.

At least one borrower to be a FTHB, defined as below:

      • The borrower has never purchased a home before; or
      • In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; or
      • The borrower recently experienced the breakdown of a marriage or common-law partnership.
  • At least one borrower must occupy the property
  • Eligible Properties:
    • Available for 1 – 4 Units
    • Owner Occupied or Partially Owner Occupied
    • Newly built homes and condos ONLY
  • Insurer Premium – surcharge of 0.20% applicable to loans where amortization is >25 years
  • Eligible loan type – Purchase, Purchase Plus Improvement, Port/Replacement
  • Ineligible loan type – Small Rental and Secondary Home Programs

Please reach out to me with any questions.