Get up to 10% of your purchase price as a shared equity mortgage with the government of Canada
The First-Time Home Buyer Incentive is a shared-equity mortgage program where the Government of Canada provides 5% or 10% of the home's purchase price to help reduce your monthly mortgage payments. This innovative program helps qualified first-time homebuyers reduce their monthly mortgage carrying costs without adding to their financial burdens.
The incentive is a shared equity mortgage, meaning the government shares in both the upside and downside of the property value. For existing homes, the incentive is 5% of the purchase price. For new construction homes, you can receive 5% or 10%. When you sell the home or after 25 years, you repay the same percentage of the home's value that you received.
To qualify, you must be a first-time homebuyer with a qualifying annual income of no more than $120,000, and your total borrowing is limited to 4 times your qualifying income. The property must be located in Canada and be your principal residence. The minimum down payment required is 5% of the first $500,000 and 10% of any amount above that.
The main benefit is lower monthly mortgage payments, making homeownership more affordable. However, it's important to understand that you'll share in both the appreciation and depreciation of your home's value with the government. Our experts can help you determine if this program aligns with your long-term financial goals.
Government shares in the upside and downside of property value
Reduce your monthly mortgage payments by up to 25%
Interest-free shared equity mortgage
Repay at any time or when you sell your home
Available for various property types including new construction
Full guidance through the application and approval process