First-Time Home Buyer Incentives In Canada: What You Need To Know

By Gin Aguilar

You’ve worked hard. You’ve saved harder. And now you are wondering whether your dream of buying a house is not far from reality. This information might be the deciding factor whether you should start looking for that safe haven now – the Government of Canada’s First-Time Home Buyer Incentive (FTHBI) came into effect last September 2nd, 2019, perfect timing for people like you. The Incentive is mainly aimed at helping young Canadians (or the so-called “millennials”) and young families to buy their first home in a fiscally responsible and more affordable way by lowering new buyers’ monthly mortgage payments.


Interested first-time homebuyers must put down at least 5% of the home’s purchase price with their own money, while the Government of Canada will fund 5% of the down payment if the purchase is of an existing/re-sale home, or 5-10% if the residential property is newly constructed. The Government will share in the upside and downside (shared equity) of the property value upon repayment.

Types of residential properties eligible:

  • Single family homes
  • semi-detached homes
  • duplex, triplex, fourplex
  • town houses
  • condominium units

It is important to take note though that the property MUST be located in Canada and MUST be suitable and available for full-time, year-round occupancy. There should be an intent to occupy the property and should not be rent out since investment properties are not eligible. Mobile or manufactured homes will also be eligible for the Incentive.


  • You must be either a: (1) Canadian citizen, (2) Permanent resident, or (3) Non-permanent resident legally authorized to work in Canada
  • Borrowers’ combined household income should be under CAD$ 120,000 – whether you are applying by yourself, with spouse or friend, you must total your qualifying income and make sure it is less than CAD$120,000.
  • At least one borrower must be a first-time homebuyer
  • The insured mortgage amount plus incentive cannot be more than four times the participants’ combined annual household income


The homeowner may repay the Incentive at any time in full without a pre-payment penalty. After 25 years or when the property is sold (whichever comes first), homeowner repays 5 or 10% of the home’s fair market value (value at that time) instead of the amount received from the Government.

If you are interested to learn more about the First-Time Home Buyer Incentive (FTHBI), you may visit:

JCA LAW OFFICE have dedicated lawyers who will gladly help you in your real estate closings (purchase and sale) and refinancing transactions. You may visit our office at 168B Eglinton Ave. East, Toronto, ON. Office Hours: Mon-Fri 9AM – 6PM, Sat 9AM – 2PM. Holidays – By appointment only. You may also give us a call at (Phone): 1-855-522-5290 (Mobile): 1-647-367-1634 or send us an email at (Email) Follow us on our Social Media accounts: Facebook:@JCALawOffice Instagram:@jcalawtoronto Twitter:@JCALawOffice.

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