{"id":1234,"date":"2019-03-20T12:29:53","date_gmt":"2019-03-20T16:29:53","guid":{"rendered":"http:\/\/www.karenmillar.com\/blog\/?p=1234"},"modified":"2019-03-20T12:29:55","modified_gmt":"2019-03-20T16:29:55","slug":"mortgage-update-10","status":"publish","type":"post","link":"https:\/\/www.karenmillar.com\/blog\/mortgage-update-10\/","title":{"rendered":"Mortgage Update"},"content":{"rendered":"\n
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A little update from our Mortgage Specialist Jake Abramowicz:<\/p>\n\n\n\n

“Wow. Sheesh. Ugh. Don’t know what to say other than…. what a waste.
I rush home to hear the budget yesterday at 4pm sharp, and of course, it’s released a little bit before so tidbits of info get released in the media. I wait for the good stuff, there I see Bill Morneau sitting and smiling, talking about helping Canadians and I wait with my breath held until he releases the platform of HOW he’ll help buyers.<\/p>\n\n\n\n


And then, I hear the sound of a balloon losing air.
So what did they announce that’ll help first-time buyers*?<\/strong><\/p>\n\n\n\n

  1. The RRSP limit will be increased to $35,000.<\/li>
  2. There is now a SHARED EQUITY program with CMHC where the Government will help with your down payment by giving you a “free” loan.<\/li><\/ol>\n\n\n\n

    #1 is easy to understand. 
    #2 will be less easy to understand so let me explain with some caveats.
    First, we don’t know (yet) what does “first time buyer” mean exactly because we all know there are a myriad of definitions for this – so let’s see how they (Government) defines it. <\/p>\n\n\n\n

    What we do know is, the Government will lend you 5% if you’re buying a resale home and 10% if you’re buying a new construction (to spur on the supply side) and will not ask for any payments on this loan until you sell the property. If you’ve lost money, so did they. If you’ve made money, they’ll take an equal portion of this (details TBA).
    A sample property that’s $500,000 would mean:
    <\/p>\n\n\n\n