The First-Time Home Buyer Incentive in Canada

The First-Time Home Buyer Incentive (FTHBI) is a program that could help make your dream a reality! This program offers a shared-equity mortgage that can reduce your monthly mortgage payments and make homeownership more affordable.

The FTHBI provides an interest-free loan of 5% for the purchase of a resale home or 5% to 10% for a new construction home. This loan is registered as a second mortgage on the property and must be repaid when the home is sold or after 25 years, whichever comes first.

To be eligible for the FTHBI, you must be a first-time homebuyer, have a household income of $120,000 or less, and the mortgage amount must not exceed four times the household income. Additionally, you must pass the mortgage stress test and have a minimum down payment of 5% of the property's purchase price.

While the FTHBI can help reduce your monthly mortgage payments and make homeownership more affordable, it is important to understand that because it is a shared-equity mortgage, the government shares in both the appreciation and depreciation of the property's value.

By understanding the First-Time Home Buyer Incentive and its implications, eligible first-time homebuyers can make more informed decisions and potentially save money on their mortgage payments. Let the FTHBI help you achieve your dream of homeownership!