Housing affordability is always a critical issue.

The Federal budget was released yesterday and there are two main initiatives that were introduced. Both these programs are directed towards the demographic of the First Time Home Buyer. These programs have an impact on mortgages and the real estate market.

The FIRST INITIATIVE pertains to RRSP with drawls for first time buyers. The maximum with drawl limit per person has been increased from $25K to $35K- which means a maximum of $70K per couple, monies withdrawn must still be paid back within 15years, any unpaid funds will be added to taxable income.  This is the first change to this program in ten years.

·         The SECOND INITIATIVE the New CMHC “First Time Buyer Incentive”  

·          Is Essentially an interest free loan option from CMHC, who will lend an additional 5% down payment on existing resale homes and up to 10% on a newly built homes

·         This program covers a portion of the mortgage costs through a shared equity mortgage with CMHC

·         The thought behind this program, is to increase affordability by lowering buyers monthly mortgage payments, however like everything, terms and conditions apply.

·         The buyer must be a first-time buyer

·         They must have a minimum 5% down-payment

·         The combined household income must be less than $120K

·         And the purchase price must be less than $500K in order to qualify

·         There is also a cap to this mortgage incentive of 4x income

·         If we look at the numbers, this means that if you were at the top end of household income at $120K, 4x your household income would mean the cap is at $480K. In this scenario your monthly payments would drop by about $228

·         When the property is sold the “interest free loan is then repaid.

IF you are considering buying a home you most likely have 2 primary concerns

FIRST to find the home that perfectly meets your needs and desires and

SECOND to purchase at the best price

This topic has been the subject of extensive analysis within the industry.

I have here a FREE REPORT which is summary compilation of these findings and includes a specific step by step purchase plan for home-buyers. The report is entitled Home-buyers- How to Save Thousands of Dollars When You Buy Real Estate.  I am sharing copies of this insider exclusive. If you or someone you know is thinking of selling or buying this report could help you reduce thousands of dollars off the price of the home that you want. To get your free copy simply call me at 905-965-5902.

If you would also like to get access to the 10 Best Buys in the area of your choice visit: www.TenBestHomeBuys.Info.

If you have any questions, I can be reached direct at 905-965-5902.

Evelyn