Announced earlier this year as part of the Trudeau government’s 2019 platform, FTHBI came into effect in September 2nd/2019 and is aimed to helping young Canadians access home ownership in a fiscally responsible and affordable way.



What are the requirements to qualify for this program?

• the combined qualifying income shoul be not higher than $120,000/year (example of qualifying income could be annual salary-before taxes, investment income or rental income)
• you have never purchased a home before (or you have gone through a breakdown of a marriage or common-law partnership even if you dont meet the other first-time home buyer requirements)
• in the past 4 years you did not occupy a home that you or your current spouse or common-law partner owned

If you meet the criteria, you can then 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.
 

How does it work?

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 this program, 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

• You can repay the Incentive at any time in full without a pre-payment 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.

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
• townhouses
• condominium units