Last updated: April 13, 2022
What this tool is all about:
This tool helps you calculate the benefit of buying with the new First-Time Homebuyer Incentive (FTHBI) program. If you’re not familiar with the program, you can read more about it in this article.
Disclaimer: Perch does not guarantee the accuracy of these results and should not be treated as a recommendation. Consult a professional prior to making any decisions as it relates to your current or future real estate transactions. Please refer to our
Terms of Use for more information.
PROPERTY TYPE | INCENTIVE (%) |
---|---|
New construction | 5% or 10% of the purchase price |
Existing home | 5% of the purchase price |
New/existing mobile or manufactured home | 5% of the purchase price |
You have the option to pay back your first-time home buyer incentive at any time without any penalties, unlike a mortgage prepayment penalty where you would have to pay a fee if you decide to pay some or all of your loan off early. However, you are required to pay back your incentive in full at the earlier of 25 years or when you decide to sell your home. Keep in mind that if you do use your FTHBI and break your mortgage early, you will also have to pay a prepayment penalty.
There are other events that can trigger re-payment:
The path to owning your first home might be a little daunting, but we have created tools to help you along the way. Our First-Time Home Buyer Incentive Benefit Calculator provides you with a cost breakdown and will help you easily assess whether the program will be beneficial to you.
You’ll be able run a few numbers so you can make the right decision of whether you should move forward with the incentive. Ultimately, this tool will help you determine whether the mortgage savings are worth the payback in equity if the value of your home increases.
What you’ll need:
All you need to do is plug in your numbers and the calculator will determine:
Things to consider before obtaining the FTHBI:
Here are a few tips to help you maximize your value: