Welcome to MONEY with MARK ALBERT. Really
appreciate you being with me today. Today we’re going to look at the First-Time
Home Buyers Incentive. You know we’ve had three videos already on that. We had the
intro video, we did an update video when the Government came out with more information,
and we also, just recently, did a long video on the Operational Policy Manual
that the Government just released this past Friday. And all those will be
available as link, links below in this video. However, today we’re just going to
look at the application process to show you, if you’re a first time home buyer,
that you don’t need to be stressed out to pursue this, if, in fact, it’s something
you want to do because you might not want to because this is ultimately
something you have to pay back, and when you pay it back, if your house has doubled
in size, you pay the Government double back. So let’s look at the process just
so you understand it. So if you’re a first time home buyer you’re up here, if
you can see my mouse. As a first time homebuyer, you’d work with someone like
me, I’m a mortgage agent. I’m part of a brokerage office which means that I have
access to many, many lenders, banks, trust companies, credit unions, all kinds of
opportunity to get you the best rate and to get you the best deal, the best
mortgage. So as a first time home buyer, if you work with me, we would then work
together. I would do all the work and find you the best lender for you and
your opportunity. And what happens is, let’s say your incentive that you want
to have is either 5 or 10%, so what we would do is the lender, on our
behalf, would contact, over here, the mortgage loan insurer. Now that could be
CMHC, that could also be Canada Guarantee, or Genworth, all three of them function
in Canada as a mortgage loan insurer. And what the lender would do is the lender
would give them a code, and it would be a code that would tell them that this
client qualifies based on the ratios of the stress test and that they’re a
first-time homebuyer but then they want 5% or 10%.
So what happens is, is the mortgage loan insurer reaches up to the program
administrator, which is CMHC, so CHMC functions as the program
administrator on behalf of the Government of Canada. So the program
administrator will look at this client opportunity and approve it. So if
approved, they communicate back down an approval, so then the mortgage loan
insurer communicates back to the lender and says, oh, this client is approved for
the incentive. So the lender would communicate to me, the mortgage agent, and I
would let the client know that we have an approval. So, so let’s say your close
date is coming up. At some point, once this mortgage application is broker
complete, the lender will send instructions, way over here, to the
solicitor. Now solicitor is just a fancy word to say the lawyer, the lawyer who’s
going to close the transaction on behalf of the client, or sometimes they use closing,
legal closing services. So the lawyer is going to communicate, the lawyer has received
instructions that everything’s approved. The lawyer communicates to the program
administrator, gets the incentive money sent to them,
and they hold it in trust for the client. So the solicitor holds the money in
trust, they also hold the down payment in trust, and they have all of the
information needed to close the deal. The lawyer also checks if there’s any liens
on the house, they check the title to make sure everything’s clean and that the client
is safe. And on the close date, the lawyer will apply to the sale of the house all
of your down payment, including the incentive, and makes sure that the
transaction goes smoothly for you, and you can take possession in a timely
manner. And that’s basically the process. So that’s all happening behind the
scenes. Obviously, there’s a lot more administrative discussions and paperwork,
but you don’t have to handle that as the client. As the client, you work with
someone like me, a mortgage agent, and then I follow through and assist you to make
sure you have a smooth and effective mortgage purchase, purchase of a home.
Listen, thank you so much for being with me. I trust this was helpful. Just wanted
to give you a sense of the flow of things to get this First-Time Home Buyers
Incentive fully applied to a purchase. Listen, have a great day thank you so
much for being with me. Look forward to talking to you soon.