Repayment of loan
Customers who apply for the first-time homebuyer incentive must note the repayment rules that the company has. The Incentive must be repaid at the end of the 25-year term or when the property is sold. Firstly, customers or their representatives must inform the company that they are ready to repay their incentive. Secondly, they must provide the company’s representative with documentation supporting the property's current market value at the time of the repayment. Afterward, there are two scenarios. The first case is early voluntary repayments or repayments at the 25-year mark, and the incentive amount must be determined using the property's fair market value. The second one is the sale of the property. In that case, the incentive amount must be based on the property's market value at the time of sale, which generally would be supported by the purchase price as stated in the purchase and sale agreement. The third step of repayment is the review of the whole documentation sent by customers. Customers will receive an invoice with payment instructions if the company's representative confirms. Finally, when the payment is made in full, the company’s representative will work with customers or their legal representation in accordance with municipal or provincial laws to complete the discharge of the shared equity mortgage.
