First-Time Home Buyers Program

The First-Time Home Buyer Incentive is a program designed to support eligible first-time homebuyers in Canada by reducing their monthly mortgage payments.

This is made possible by a shared-equity mortgage with the Government of Canada. It 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

The shared-equity mortgage provided through the Incentive involves the government making a shared investment in the home, which leads to the government sharing both the potential benefits and risks associated with changes in the property's value.

The repayment of the Incentive is determined by the property's fair market value at the time of repayment. If a homebuyer received a 5% Incentive, they would be required to repay 5% of the property's value at that time. Similarly, if a homebuyer received a 10% Incentive, they would need to repay 10% of the property's value when the repayment is due.

The repayment of the Incentive is required either after a period of 25 years or upon the sale of the property, whichever occurs earlier. The homebuyer has the flexibility to repay the Incentive in full at any time prior to these events, without incurring any penalties.