New First Time Home Buyer Incentive


The First-Time Home Buyer Incentive has been discontinued. The deadline for new or updated submissions for the First-Time Home Buyer Incentive is midnight ET on March 21, 2024. Read more on the CMHC website.

First Time Home Buyer Incentive Launching on September 2, 2019

Federal Government’s Effort to Help Canadians Buy their First Home

The First Time Home Buyer Incentive will help middle class families fulfill their dream of homeownership by reducing monthly mortgage payments required for first time homebuyers, without increasing the down payment amount. This program is in addition to other measures in 2019 Budget to support first time homebuyers such as increased RRSP withdrawal limit from $25,000 to $35,000. The Government of Canada has allocated $1.25 billion over three years for this program starting September 2019.

Quick Summary of the First Time Homebuyer Incentive

  • The Incentive will allow eligible first time homebuyers who have the minimum down payment for an insured mortgage with Canada Guaranty, CMHC or Genworth to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.
  • For the purchase of an existing home, an Incentive amount of 5% may be available. For the purchase of a newly constructed home, an Incentive amount of 5% or 10% may be available.
  • For a new or resale mobile/manufactured home, an Incentive amount of 5% may be available.
  • Doubling the Incentive for purchasers of newly constructed homes encourages new housing supply.
  • No on-going repayments are required, the Incentive is not interest bearing, and the borrower can repay the Incentive at any time without a pre-payment penalty.
  • The government shares in the upside and downside of the change in the property value.
  • The buyer must repay the Incentive after 25 years, or if the property is sold, whichever is earlier.
  • The Incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000. At the same time, a participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual household income.
  • Per the table below, for a family buying a $500,000 home, this program could save them as much as $286 per month or more than $3,430 a year (note: for illustration purposes only, results subject to change depending upon amortization, interest rate, term, etc.).

Source: Canada Mortgage and Housing Corporation

without FTHBIwith FTHBIwithout FTHBIwith FTHBIwithout FTHBIwith FTHBI
House Price$200,000$200,000$350,000$350,000$500,000$500,000
Downpayment 5%$10,000$10,000$17,500$17,500$25,000$25,000
FTHBI 10%NA$20,000NA$35,000NA$50,000
Insured Mortgage$190,000$170,000$332,500$297,500$475,000$425,000
Insured Mortgage + Mortgage Insurance Premium$197,600$174,760$345,800$305,830$494,000$436,900
Monthly Payment*$989$875$1,731$1,531$2,473$2,187
Savings on Monthly Payment$114$200$286
Savings on Yearly Payment$1,372$2,401$3,430

Who is eligible for this incentive?

The First Time Home Buyer Incentive is open to all Canadian citizens, permanent residents and non-permanent residents who are legally allowed to work in Canada.

Your total income must be $120,000 or less per year individually if buying alone, or that same amount combined if buying with another person.

Find out Your Eligibility for First Time Home Buyer Incentive at National Housing Strategy Site.

Team Kalia has helped numerous first time home buyers, millennials, newcomers and people on work permit buy their first home or condo in Mississauga and surrounding areas. Call us today at 905-339-5111 to book your personalized one-on-one First Time Home Buyer Consultation!

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