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The federal government announced a new program aimed at helping prospective first-time homebuyers. It has promised that Canada’s housing agency, Canada Mortgage and Housing Association Corporation (CMHC), will contribute up to 10 per cent of a homes down payment. Thus, decreasing the mortgage load for homeowners. Given that real estate in the GTA has been rising year over year, the initiative is sure to be a positive for those looking for homes or condos for sale in Yorkville.
Toronto’s real estate market has currently ranked the 12th out of 35 for most expensive one by a 2019 CBRE Global Living report with an average property price of $768,972. The government’s new program is meant to alleviate the problem for first-time home buyers in Toronto. Some details are still to be finalized, but so far, we know that it will:
- Assist first-time homebuyers with their down payment. There will be an additional down payment of 5% for resale properties and 10% down payment for new properties paid for by CMHC.
- Will require borrowers to meet minimum insured mortgage down payment requirements, “ensuring they are invested in their purchase.”
- Result in freed up rental supply and will thus ease pressure on rents according to CMHC.
- Have its cost capped at $1.25 billion over three years. It is also limited to a maximum combined household income of $120,000 and total borrowing limited to four times income of $480,000 home value.
“What’s been revealed about the program is still a bit hazy, but it looks like a step in the right direction” says Janice Fox, Broker of Record for Hazelton Real Estate Brokerage.
“As the market currently is, there are too many hard-working Canadian families looking for a home, but unable to find an affordable option. For example, we have many clients inquiring about homes and condos in Toronto given the investment opportunity they represent. Unfortunately, many of them are unable to purchase once they realize how high prices have climbed. This government initiative is good approach to alleviating the disparity.”
About Hazelton Real Estate Inc. Brokerage
Purchasers searching for personalized services and access to the most exciting Yorkville condos for sale turn to Hazelton Real Estate Inc. Brokerage. We are uniquely positioned in to get you the most exclusive luxury condos in Yorkville. Our relationships throughout the brokerage community allow us to find the best deals for our clients.
