The newly released First Time Home Buyer Incentive program from CMHC (Canadian Mortgage and Housing Corporation) was officially released on September 2, 2019.

The Program:

Eligible homeowners are able to apply for a 5% or 10% shared equity mortgage with the Government of Canada. A shared equity mortgage is where the government shares in the upside and downside of the property value. The Incentive enables first-time homebuyers to reduce their monthly mortgage payment without increasing their down payment. The Incentive is not interest bearing and does not require ongoing repayments.

Through the First-Time Home Buyer Incentive, the Government of Canada will offer:

5% for a first-time buyer’s purchase of a re-sale home
5% or 10% for a first-time buyer’s purchase of a new construction
(source)

It’s important to understand that with this program, the government will have a 5-10% equity stake in your home.

Eligibility:

1). Be a First Time Homebuyer
2). You must have 5% down payment of your own money.
3). Qualifying household income cannot be greater that $120,000.
4). Mortgage amount is limited to 4 x your house hold income to a maximum of $480,000.00 (This should increase to $700,000 shortly).

There are restrictions on the type of property you can purchase. The below are the eligible properties:

New construction (5-10% incentive)
Re-sale home (5% incentive)
New and resale mobile/manufactured homes (5% incentive)

Residential properties include single family homes, semi-detached homes, duplexes, triplex, fourplex, townhouses, condominium units. The property must be located in Canada and must be suitable and available for full-time, year-round occupancy.

How Does Repayment Work?

You can repay back the incentive in full at any time without a pre-payment penalty or you can repay the incentive after 25 years or if the property is sold, whichever happens first. The repayment of the incentive is based on the property’s fair market value:

You are given a 5% incentive of the home’s purchase price of $200,000 or $10,000. If your home value increases to $300,000 your payback would be 5% of the current value or %15,000
You are given a 10% incentive of the home’s purchase price of $200,000 or $20,000 and your home value decreases to $150,000, your payback amount would be 10% of the current value or $15,000.

To find out more about this program please contact us and visit

FIRST TIME HOMEBUYER INCENTIVE