First-time homebuyers will be able to get a
shared equity mortgage through the Canada Mortgage and Housing Corp.
Make homeownership more affordable for first-time buyers by providing greater access to Registered Retirement Savings Plan savings to buy a home, and by implementing the First-Time Home Buyer Incentive, a
shared equity mortgage program that would reduce the mortgage payments required to own a home.
It is often a requirement that you cannot own any other residential property whilst you have the
shared equity mortgage.
This helps clients to purchase a new build property through a
shared equity mortgage. Under the scheme the client will have an 80 per cent share of the equity with the government holding the remaining 20 per cent.
Figures from housing investment and
shared equity mortgage provider Castle Trust show that regional variations mean there is a 10% gap between the highest and lowest proportion spent on mortgages - from 22.4% in Northern Ireland to 32.1% in the South East.
Sean Oldfield, chief executive officer of housing investment and
shared equity mortgage provider Castle Trust, said: "Even with mortgage rates well below their historic average, mortgage payments represent a significant proportion of a household's monthly spending, with major differences from region to region.
Following deduction of the pounds 10,000 'sweat equity', eligible home partners have a choice of obtaining a mortgage to buy outright or taking out a
shared equity mortgage to own a minimum of 50% of the property and then pay rent to Cosmopolitan on the remaining share.
The builder said in August that it was in early talks to sell part of its
shared equity mortgage book, which may prompt other house builders to follow in its footsteps.
The Cheswick, a two bedroom luxury apartment is currently on the market for pounds 203,950, which based on a 70 percent
shared equity mortgage of pounds 142,765, can work out at payments of pounds 873 per month.* Similar properties available to rent in the Solihull area for between pounds 850 and pounds 950 per month.
It is also possible for you to put a charge on the house to secure your loan in the same way as any high street lender and one way of doing this is a
shared equity mortgage.
Within the North Index, it was speculated that Barratt Developments is in talks to sell a portion of its
shared equity mortgage book.
Monmouthshire's
shared equity mortgage will allow firsttime buyers to buy their home for 70% of its value.
