The Federal program aimed at helping First time home buyers in Canada ended last month March 31st. I know, this makes it a bit more difficult for first time home buyers within a certain household income bracket. However, there are other options across different provinces. If you live in New Brunswick and fall within certain household income bracket you still have the provincial option.
The New Brunswick First-Time Home Buyer Incentive presents both opportunities and challenges for eligible buyers that may influence their decision-making process. The New Brunswick First-Time Home Buyer Incentive offers both advantages and disadvantages for eligible buyers. This loan is interest-free for households with incomes less than $40,000. For every $1,000 of income above $30,000, the interest on the loan increases by 0.5%, up to the provincial borrowing rate. To also benefit from this loan, your, your Total Debt Service Ratio must not exceed 42%.
Want to know more about the FTHBI then click here for more
If you are still reading and considering the benefits of The New Brunswick First-Time Home Buyer Incentive, then see a few benefits below and some things to consider before you go for it.
- Financial Assistance: The program provides interest-free loans to eligible first-time homebuyers, which can significantly reduce the financial burden of purchasing a home.
- Increased Affordability: By offering financial assistance, the program aims to make homeownership more attainable for individuals who might otherwise struggle to afford a home in New Brunswick’s housing market.
- Shared Equity: Participants share the equity of their home with the government, which means lower monthly mortgage payments and decreased stress on household finances.
- Flexibility: The incentive allows buyers to choose from a variety of housing options, including new construction, existing homes, and condominiums, giving them the flexibility to find a property that meets their needs and preferences.
Things to Consider before you go for it:
- Limited Eligibility: The incentive is available only to first-time homebuyers who meet specific income and mortgage eligibility criteria, excluding those who have previously owned a home or do not meet the income requirements.
- Shared Equity: While shared equity reduces upfront costs, it also means that buyers will have to share any potential appreciation in the value of their home with the government when they sell, which could reduce their overall return on investment.
- Potential Market Impact: The program’s introduction may influence housing demand and prices in New Brunswick, potentially leading to market distortions or increased competition for eligible properties.
- Complexity: Navigating the application process and understanding the terms of the incentive can be challenging for some buyers, requiring careful consideration and financial planning.
Ultimately, whether the New Brunswick First-Time Home Buyer Incentive is beneficial depends on individual circumstances, financial goals, and preferences. Note also that you will need the help of your financial adviser or Mortgage broker to have expert review of your unique financial situation and the options available to you. Prospective buyers should carefully weigh the advantages and disadvantages before deciding whether to participate in the program.
CLICK HERE for more information about The New Brunswick First-Time Home Buyer Incentive.
*The information provided here is for educational purposes only. Consult real estate, financial and legal professionals before making any financial or real estate decisions.
*This is not intended to solicit Buyers or Sellers under contract