CMHC First-Time Home Buyer Incentive – Another way to sucker Canada’s middle class into the death pledge debt trap! – June 20, 2019,
Being that CMHC’s mortgage insurance experiment didn’t go as planned, the Crown Corporation in order to keep the mortgage debt trap Ponzi scheme going is now introducing the First-Time Home Buyer Incentive. Now, the first thing that should be noted is that if it hadn’t been for CMHC which is a Crown Corporation making itself an insurer of mortgages with the taxpayers on the hook if the housing market crashes prices wouldn’t be where they are today.
That aside, being that Canadians aren’t saving, Canadians don’t like the RRSP and housing prices are artificially higher because via government intervention it’s easier to qualify for a mortgage thereby equating to more people qualifying for a mortgage which thereby pushes prices up and raises the cost of living for everyone, the government has come up with a new solution to sucker more people into the real estate death pledge.
Introducing the First-Time Home Buyer Incentive (FTHBI), which is not the same thing as the First-Time Home Buyer Incentive(HBTC)LoL. So as many people know, a lot of people are going into debt to get down payments, it’s part of the reason why this idea was proposed. Being that people are going into to debt to get a down payment for a MORTGAGE(Death Pledge), the real estate lobby and the federal government who obviously want to buy votes decided to make sure that instead of going into debt with private sector loan sharks Canadians can go into more insurance debt with the CMHC, it’s like a renting to own mortgage insurance, if that makes any sense.
It’s basically an incentive to make CMHC your mortgage insurer for a prolonged period of time. CMHC is one of Canada’s most profitable Crown Corporations, it could be the most profitable, I’m not really sure and it’s extremely important that this mortgage pyramid scheme keeps an influx new buyers to keep the base solid.
Numbers recently came out that more and more Canadians are becoming entrepreneurs, as you know entrepreneurs usually don’t get traditional mortgages and the reality is most people when given the opportunity want to get as far away from the government as possible. Sure the young and unsuspecting will get suckered into the CMHC insurance scheme, but nobody really wants any part of it, people accept CMHC because without them housing prices would deflate, but housing deflation equates to less money for CMHC and the potential of more mortgage defaults.
Below is a brief description of the
Buyers must come up with their own cash for a down payment of at least five per cent of the property value, but the incentive is meant only for mortgages greater than 80 per cent of the home value. In other words, if you’re planning on a down payment of 20 per cent or more, this isn’t for you.
The maximum home price you can aim for is four times your income plus the incentive amount.
So yeah, if you want a house near jobs and civilization, you’re going to pay near $400,000, although the assumption is the free enterprise caused this price inflation, the reality is Canada’s central bank and the government cause this price inflation, but because it’s a source of revenue for the government, the government has to do everything in its power to make sure more Canadians get lured in the mortgage death pledge. Remember, and I hope readers remember this, living in a house or condo has unexpected expenses that you’ll have to pay on top of your mortgage and energy-related costs.
Prior to mortgage price inflation, a house was often referred to as a money pit, because maintenance for a house will consume a lot of your hard earned dollars. The First-Time Home Buyer Incentive (FTHBI) is actually a government incentivizing people to borrow money for a down payment. Anyway, a sucker is born every day!
- CMHC’s First-Time Home Buyer Incentive Falls Short of Expectations – canadianmortgagetrends.com
- Is the First-Time Home Buyer Incentive a good deal for homebuyers? – globalnews.ca
- Making Housing more Affordable: Canada’s First-Time Home Buyer Incentive – CMHC
- The First-Time Home Buyer Incentive – CMHC
Interesting times ahead!