Are You a First-Time Home Buyer in Canada?
The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens.
Incentives of First-Time Home Buyers
The First-Time Home Buyer Incentive is a shared-equity mortgage with the Government of Canada.
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
If you purchase an existing home of $200,000, the Government of Canada will provide you $10,000 (5%) in a shared equity mortgage. This lowers the amount you need to borrow and reduce your monthly expenses.
If the home value increases to $300,000 the payback would be 5% of the current value, which is $15,000.
How to Qualify for First-Time Home Buyers Incentive
Any First-Time Home Buyers with qualified annual incomes of $120,000 or less will receive the incentive.
Be a first-time home buyer
Be a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada
Earn less than $120,000
Have the minimum qualifying down payment
The total borrowing amount is limited to 4 times the qualifying income