First Time Home Buyers Incentive

The Federal Government started to accept applications for the new First-Time Home Buyer Incentive back on September 2, 2019, however the first closings could not take effect until today, Friday, November 1, 2019, or later.

The new incentive program is a shared equity mortgage, where the government shares in increases and decreases of the value of your property. It enables qualified first-time buyers to participate in a shared equity program that will decrease your mortgage size because the government will contribute additional funds increasing your total down payment. To qualify for the incentive, you are required to put down a minimum of 5% of the purchase price and the government will contribute an additional 5% of the purchase price on existing homes, or 10% of the purchase price on new homes. The purchase must also be an insured mortgage meaning the total down payment, your portion plus the incentive portion, must total 19.99% or less of the purchase price. The incentive is not a loan, so it is not interest bearing and does not require ongoing repayments. However, you will be required to repay the incentive after 25 years or when the property is sold and the incentive CANNOT be carried over to another property if you choose to sell and buy again. The repayment amount of the incentive is based on the property’s fair market value at the time of repayment, so if your home’s value decreases you will repay less and if your home value increases you will be required to repay more.  

Benefits of the First-Time Home Buyer Incentive 

The Incentive has been created for First Time Buyers only. For many Canadians, especially young people and first-time buyers, finding an affordable place to call home is not just a challenge – it feels like an impossibility. There aren’t enough affordable houses for people to buy. This makes finding a good place to live too expensive and beyond what many people, especially younger Canadians, can afford.  This incentive is designed to help young Canadians access home ownership in a fiscally responsible and affordable way. Statistically this is the demographic group with the lowest percentage of homeownership. 


Learn about the program

There are a few qualifiers to apply for this incentive. You need to have a minimum down payment to be eligible, Your maximum qualifying income can be no more than $120,000, and your total borrowing is limited to 4 times the qualifying income. Calculate your maximum purchase price and what you could receive as an incentive.

Determine Your Eligibility 

Contact me and I will review the program requirements with you, so you can make sure that this is the program for you. 

Choose Your Incentive and Apply

I will help guide you through this step of the process by reviewing the details and giving you all the information to assist with selecting the right incentive for you. You will then need to read, print and sign the application documents and I will submit these documents to the lender when an offer is written.  


Early payout options in full are available at any point in the duration of the 25 years.  Learn more about fair market value and how this will help you calculate repayments. Calculate the fair market value of your home and multiply it by the percentage of the incentive you received. 

If you are looking at purchasing your first home and have additional questions about the First Time Home Buyers Incentive, contact me today and I will answer all your questions relating to the Incentive and your mortgage options.