Lindsay Reimers

The First-Time Home Buyer Incentive

02 August 2019
Lindsay Reimers

This week, the government of Canada released further information on the The First-Time Home Buyer Incentive set to release on September 2nd, 2019. 

* The program will be ready to receive Incentive applications on September 2, 2019 (barring any unforeseen circumstances). The first closing will take effect on November 1, 2019. 

This initiative is designed to help young Canadians access home ownership in a fiscally responsible and affordable way.

Statistically this is the demographic group with the lowest percentage of homeownership. 

How will this help younger Canadians struggling to save for a down payment? 

In all cases, the borrower must meet minimum down payment requirements with traditional sources such as savings, withdrawal/collapse of a Registered Retirement Savings Plan (RRSP), or a non-repayable financial gift from a relative/immediate family member. By obtaining the Incentive, the borrower may not have to save as much of a down payment to be able to afford the payments associated with the mortgage.  

If you're a first time home buyer or ONE of the following, this information will be helpful!

  • you have never purchased a home before
  • you’ve recently experienced a breakdown of a marriage or common-law partnership
  • in the last 4 years, you did not occupy a home that you or you current spouse or common-law partner owned

With this incentive, Government of Canada provides:

  • 5% of a first-time buyer’s purchase of existing homes
  • 5% or 10% of a first-time buyer’s purchase of a new build

The incentive is available to first-time homebuyers with qualified annual incomes of $120,000 or less. A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual income.



You can repay the Incentive at any time in full without a penalty. You have to 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 receive 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 receive a 10% incentive of the home’s purchase price of $200,000, or $20,000 and your home value decreases to $150,000, your repayment value will be 10% of the current value or $15,000. 

* Important to note - If your property value goes down, you are still responsible for repaying the shared equity mortgage based on the current home value at time of repayment.  


What properties are eligible? 

 The Incentive is to help first-time homebuyers purchase their first home. Eligible residential properties include: 

  • new construction
  • re-sale home
  • new and re-sale mobile/manufactured homes 

Residential properties can include 1 to 4 units

Types of residential properties include:

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

IMPORTANT: The property must be located in Canada and must be suitable and available for full-time, year-round occupancy.


What next? 

To read more about the First Time Home Buyer Incentive head over to the Government of Canada's website. Purchasing your first is fun and exciting but can also be overwhelming if you're unsure where to start.

I provide free buyer consultations to determine where you are on your home buying roadmap. By sitting down with me, we can walk through the home buying process and I can answer any questions you may have. I've worked with several first time home buyers in Toronto and I am confident my experience and knowledge can get you the most from your investment. 

To learn more about my services and read about what my clients have to say about me, click here

Talk to you soon!