Unlocking the First-Time Home Buyer Incentive in Canada
Buying your first home in Canada can feel overwhelming — but the First-Time Home Buyer Incentive is here to help ease the financial burden. This government-backed program is designed to make homeownership more affordable for new buyers by offering shared equity support, reducing your monthly mortgage payments without increasing your down payment.
If you’re a first-time home buyer in Toronto, Ontario, or anywhere across Canada, understanding how this incentive works — and how it fits into your mortgage strategy — could save you thousands.
What is the First-Time Home Buyer Incentive?
It’s a shared equity program offered by the Canadian government, where they contribute 5% or 10% of the purchase price of your home. This reduces the size of your mortgage and makes your monthly payments more manageable.
Who qualifies for the incentive?
To qualify, you must be a first-time home buyer with an annual income under $120,000 (or $150,000 in high-cost areas). Your total borrowing cannot exceed four times your qualifying income.
What homes are eligible?
The incentive applies to:
- Newly constructed homes (eligible for 5% or 10%)
- Resale homes (5%)
- New or resale mobile/manufactured homes (5%)
How does repayment work?
The government doesn’t charge interest, but you’ll need to repay the same percentage of the home’s value when you sell or after 25 years — whichever comes first. If your home appreciates, so does the amount you’ll owe.
It’s important to carefully weigh the pros and cons. While the incentive lowers your monthly payments now, it means sharing future appreciation with the government. A trusted mortgage broker can help you decide whether it’s the right fit for your long-term financial goals.
At Mortgages.ca, we work with first-time home buyers in Toronto and across Canada to make the mortgage process stress-free. We’ll walk you through every step, help you apply for the incentive, and connect you with the most competitive rates.
Ready to make your first home a reality? Contact us today to learn how the First-Time Home Buyer Incentive could work for you.