Canadian First Time Buyers

Newsletter April 2019 – Homeownership Just Got Easier for Canadian First Time Buyers

Newsletter April 2019 – Homeownership Just Got Easier for Canadian First Time Buyers 1024 400 Guardian Financing

Welcome to the Guardian Financing April 2019 monthly newsletter. This month’s issue is on how the government intends to make homeownership for Canadian first time buyers more achievable, via the Federal Budget.

Homeownership Just Got Easier for Canadian First Time Buyers

Homeownership for Canadian first-time buyers just got easier! The Federal Budget has introduced an incentive program that will see mortgage payments go lower for households having annual incomes of less than $120,000.

Rising interest rates, rising housing prices, and tougher financing requirements have been nothing but a hurdle for young Canadians aspiring to become first-time homeowners. Experts in the real estate industry have been calling upon the government to consider various measures, including revising the stress test, and extending the maximum amortization period to 30 years so that first-time buyers may get some reprieve when it comes to homeownership. This, and many others may make it easier to get loans in Canada.

The federal government seemed to have finally responded to the pleas of multiple economic experts, as well as the cries of the masses, to make home ownership easy for young and first-time buyers. According to the federal budget dubbed, “Investing in the Middle Class,” the government has put in place a number of measures to reduce middle-class debt, and to improve access to training programs, along with financial support, facilitating access to home ownership.

As far as housing affordability and accessibility is concerned, the government aims to increase loans available under The Home Buyer’s Plan from $25,000 to $35,000. This means that couples buying a house together will have access to up to $70,000.

Under this plan, the government will come up with a new equity sharing program known as The First Time Home Buyer Incentive, whereby a total of $1.25 billion will be invested to help first time homebuyers to offset mortgage costs.

With the new incentive, the government aims at providing interest-free mortgage loans to first-time buyers whose annual income is less than $120,000. The Canadian Mortgage and Housing Corporation – CMHC, will offer up to 5% and 10% for resale housing and new builds, respectively. The CMHC will also retain a percentage of equity until the loan is fully cleared – at which point, it is hoped that the home shall already be sold, or the buyer shall have become financially stable.

It is believed that the federal government will officially launch the initiative in autumn, and it is estimated that up to 100,000 first time buyers will benefit.

Guardian Financing is a direct private mortgage lender. We serve the greater Montreal area providing short term residential mortgage loans, typically ranging from $50,000 to $3,000,000. Contact us today to discuss your file at 514-700-3121 or by email at