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 of Canada participates in the increases and decreases 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

It’s important to understand that with this program, the government will have a 5-10% equity stake in your home and register their share as a 2nd mortgage.


1). You or your partner must be a First Time Homebuyer
2). You must have a 5% down payment of your own money.
3). Qualifying household income to be $120,000 or less for Manitoba & Alberta (150,000 for Vancouver, Toronto or Victoria).
4). Mortgage amount is limited to 4x your household income of $480,000 In Manitoba and Alberta (4.5x in GTA, Vancouver, and Victoria max 675,000).

There are restrictions on the type of property you can purchase. 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, and 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 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 if your home value decreases to $150,000, your payback amount would be 10% of the current value or $15,000.

The program is updated often to adapt to changing market conditions, to find out more about this program please contact us and visit.

FIRST TIME HOMEBUYER INCENTIVE…/first-time-homebuyer-incentive

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