The maximum purchase price can not exceed $560,000
If the borrower comes up with at least a 5% downpayment the government
will provide an interest free loan of 5% on resale homes and up to 10%
on new homes.
In exchange for the equity CMHC is providing they
take advantage of any increase in home value and they will also absorb
any decrease in home value to the same percentage as they have in the
home, ie either 5% or 10%
The loan must be paid back within 25 years or if the buyers sells before that.
Applications will be accepted as of September 2nd for home sales that do not close any earlier than November 1st
The big advantage here is that you are getting an interest free loan
equal to 5% (10% if a new home) of the purchase price for up to 25