Canada’s New First-Time Home Buyer Incentive

You could qualify for Canada's New First-Time Home Buyer Incentive

For most people, a home is the most expensive purchases they’ll ever make, and affording one isn’t easy. To help make this important purchase easier, on September 2, 2019 the Canadian government is introducing a new program for those who dream of owning their first property; it’s called the First-Time Home Buyer Incentive (FTHBI).

What is the First-Time Home Buyer Incentive?

The FTHBI offers first-time home buyers a new way to reduce their mortgage payments without having to increase their down payment. 

How does the program work? 

The Canadian government lends qualified buyers the equivalent of 5% of the purchase of a re-sale home and 5 or 10% of the purchase of a new build. You aren’t charged interest and there aren’t any principal payments. When you apply for a mortgage, the amount you’re applying for is lower, meaning lower mortgage payments.

Who’s eligible to apply for this incentive?

To be eligible for the FTHBI, you must:

Be a first-time home buyer

Have a maximum annual income of $120,000 

Expect to borrow no more than four times your income

Have a down payment that is less than 20% of the purchase price

Have a minimum down payment that meets the following criteria: 5% of the first $500,000 of the lending value, and 10% of the lending value above $500,000 

When is repayment due?

You must repay the government after 25 years, or when you sell the property—whichever happens first. You also have the option to repay the incentive at any time without penalty.

How much do I pay back?

The percentage you borrow is the percentage you’ll owe at the time of repayment.  If you borrow 5% of your home’s purchase price, you’ll pay back 5% of your home’s value at the time of repayment. That’s because this is a shared equity mortgage, which means the government shares in your profit, or loss, too. 

When can I apply for the First-Time Home Buyer Incentive?

The program is scheduled to launch on September 2, 2019. For full application details visit the complete online guide to the First-Time Home Buyer Incentive. You’ll also find a helpful self-assessment tools, including an eligibility calculator.

This new program makes it easier to afford your first home sooner, which means you could be ready in time to own a home at Ivy Ridge in Whitby. Ivy Ridge offers a peaceful retreat while keeping you conveniently close to nearby amenities – GO transit, Highway 401, 412 and 407, schools, parks, trails and museums. This community – which won four awards at the Durham Region Home Builders’ Association Awards of Excellence, including community of the year– includes 2- to 3-bedroom townhomes measuring 1,100- to 2,100 square feet and 36- to 43-foot detached homes with 9-foot ceilings.

Register today to receive updates and special offers about this award-winning community in Whitby.