OTTAWA - The federal Liberals say a new program to help new buyers pay for their first home will kick in on Labour Day.

The program that will help cover some mortgage costs will be available starting Sept. 2, only weeks before the October federal election.

The government's plan will see it pick up five per cent of a mortgage on existing homes for households that earn under $120,000 a year, on a mortgage of no more than $480,000.

It plans to cover up to 10 per cent to spur construction for new homes.

There isn't any interest on the federal money.

A buyer will have to repay it if they sell their house, or after 25 years of living in the home.