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The First-Time Home Buyer Incentive came into effect in September of 2019 and is expected to serve about 100,000 Canadians. Have you tapped into it yet?
Your property data is the key to refining your real estate marketing strategy to find eligible first-time home buyers across Canada.
Before we get to how to target first-time home buyers, however, let’s look at what exactly the First-Time Home Buyer Incentive is and who is eligible.
First-Time Home Buyer Incentive
The First-Time Home Buyer Incentive (FTHBI) promises to make real estate more affordable for those entering the market. The federal program launched on September 2, 2019. It offers eligible buyers up to 10% of a home’s purchase price to put toward their down payment, lowering mortgage carrying costs.
Eligible buyers don’t have to make ongoing payments or pay interest on the loan, but they do need to repay it when they sell the house or after 25 years (whatever comes first).
The exact amount they have to repay depends on the percentage of the home’s fair market value at the time of sale or after 25 years. MoneySense has a good breakdown of what this might look like.
Who is Eligible?
There are several key measures a potential home buyer must meet to qualify for the FTHBI. These include:
Potential for Expansion
In the 2019 Canadian Federal Election, the Liberal Party of Canada campaigned to expand the FTHBI.
If expanded, it would cover home values of up to $789,000 (vs. the $480,000 limit) in the areas of Victoria, the Greater Vancouver Area, and the Greater Toronto Area. The proposed expansion of the program does not apply to areas outside of those three markets.
Real Estate Marketing Tips for Targeting First-Time Home Buyers
If you want to target first-home home buyers who are eligible for the incentive, your property data can help.
Look for eligible buyers in smaller centres. FTHBI limits might be too low for cities with high home prices, like Toronto and Vancouver. Use tools, like the Teranet National House Price Index, to find more affordable locations across the country.
Learn more about the FTHBI program and eligibility: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
Your GeoWarehouse property tools can help you tap into the First-Time Home Buyer Incentive or any other real estate market you would like to target.
Our insightful property data helps generate leads and close more deals for first-time home buyers and long-time homeowners alike.
Discover the power today. Become a GeoWarehouse subscriber by calling 1-866-237-5937 or visiting www.geowarehouse.ca.