Empowering Homeownership: The First-Time Home Buyer Incentive in Canada

The deadline for new submissions for the First-Time Home Buyer Incentive was March 21, 2024, midnight EST. No new approvals will be granted after March 31, 2024.

First-time homebuyer incentives in Canada can vary depending on the province or territory. However, one of the most well-known federal programs is the First-Time Home Buyer Incentive (FTHBI). This program, introduced by the Canadian government, aims to make home ownership more affordable for first-time buyers.

The First-Time Home Buyer Incentive assists individuals nationwide in purchasing their first home by offering 5 or 10% of the home’s purchase price as down payment assistance. This infusion into your down payment reduces your mortgage expenses, making homeownership more financially feasible. By leveraging the First-Time Home Buyer Incentive, you can streamline the home buying process and decrease your monthly mortgage payments.

This program operates through a shared equity model, where the government contributes an additional 5% or 10% of the down payment for your home. Subsequently, you repay the government either 5% or 10% of the property’s market value at the time of repayment, capped at a maximum repayment amount. 

As indicated by its name, this incentive targets first-time homebuyers, defined as individuals who have never owned a home before or have not occupied a home owned by themselves or their current spouse/common-law partner within the last 4 years. 

Several criteria determine eligibility for the First-Time Home Buyer Incentive, including income thresholds, borrowing limits, citizenship status, and meeting minimum down payment requirements.

Here are some key points about the FTHBI:

1. Shared Equity Mortgage: Under this program, the government contributes to the purchase of a home by providing a shared equity mortgage with first-time buyers. This means the government shares in the upside or downside of the property value when it is sold.

2. Eligibility: To qualify for the FTHBI, applicants must meet certain criteria including being a first-time homebuyer, having a minimum down payment, and meeting certain income thresholds.

3. Maximum Property Value: The maximum property value eligible for the FTHBI depends on the area. In more expensive regions like Toronto and Vancouver, the maximum property value is higher.

4. Repayment: Participants in the FTHBI are required to repay the shared equity mortgage either when they sell the property or after 25 years, whichever comes first. The repayment amount is based on the property's fair market value at the time of repayment.


For appreciation, the Incentive amount may yield a maximum gain to the government of 8% per annum, while for depreciation, it could result in a maximum loss to the government of 8% per annum. 

Once pre-approved for a mortgage and having found a suitable home, eligible applicants can apply for the incentive by completing two application forms and submitting them to their lender. The lender will then process the application on their behalf. Additionally, the final signed shared equity mortgage package should be provided to the solicitor to retain on the applicant's behalf. Upon acceptance, applicants must activate the incentive by contacting FNF Canada at least 2 weeks prior to the closing date, providing the necessary details.

In addition to federal programs like the FTHBI, some provinces and territories may offer their own incentives for first-time homebuyers, such as land transfer tax rebates, down payment assistance programs, or incentives for newly built homes. Schedule a consultation with our Team and we'll provide you further details based on your situation.