First Time Home Buyer’s Incentive


Are you interested in getting an additional 5 or 10% to add to your down payment on your first home?

The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens.

The First-Time Home Buyer Incentive is a shared-equity mortgage with the Government of Canada, which offers:

  • 5% or 10% for a first-time buyer’s purchase of a newly constructed home
  • 5% for a first-time buyer’s purchase of a resale (existing) home
  • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home

Buying a home for the first time can be an exciting yet daunting process. In Canada, the government has introduced several initiatives to assist first-time home buyers in achieving their homeownership dreams. One such program is the First-Time Home Buyers Incentive.

  1. Understanding the First-Time Home Buyers Incentive: The First-Time Home Buyers Incentive is a government program designed to make purchasing a home more affordable for first-time buyers. It provides a shared equity mortgage, allowing eligible individuals or families to finance a portion of their home purchase through a government loan.
  2. Benefits of the Incentive: a. Reduced Mortgage Payments: The shared equity mortgage lowers the overall mortgage amount, resulting in lower monthly payments and making homeownership more affordable. b. Shared Appreciation: As the government shares in the equity, they also share in the appreciation when the property is sold, providing potential benefits to both the homeowner and the government. c. Increased Buying Power: The incentive expands the purchasing power of first-time buyers, enabling them to consider properties that may have otherwise been financially out of reach.
  3. Eligibility Criteria: a. First-Time Home Buyer Status: To qualify for the program, you must be a first-time home buyer, meaning you have not owned a home or lived in a home owned by your spouse or common-law partner within the last four years. b. Minimum Down Payment: You must have a minimum down payment to be eligible for the incentive, which is 5% for a resale home or 5% or 10% for a new construction home. c. Maximum Household Income: There are income thresholds to qualify for the program, ensuring it is accessible to those who need it the most. The income limits vary depending on the region and household size.
  4. How the Incentive Works: a. Shared Equity Mortgage: The incentive provides a shared equity mortgage, where the government contributes either 5% or 10% towards the purchase price, depending on whether the property is newly constructed or resale, respectively. b. Repayment and Equity Sharing: The shared equity mortgage must be repaid within 25 years or when the property is sold, whichever comes first. At that point, the government’s contribution is returned along with their share of the property’s appreciation.
  5. Applying for the Incentive: a. Consult a Mortgage Professional: It is advisable to consult with a mortgage professional who can guide you through the process and help determine your eligibility. b. Contact Participating Lenders: Reach out to participating lenders who offer mortgages under the First-Time Home Buyers Incentive to initiate the application process. c. Provide Required Documentation: Prepare the necessary documentation, including income verification, mortgage pre-approval, and other relevant paperwork.

For more information on this Government of Canada incentive consult the following resources:

CMHC – The First Time Home Buyer Incentive

National Housing Strategy – First-Time Home Buyer Incentive