First Time Home Buyers Incentive Plan

By Connie Graham and Briana Hennigan |


Available Sept 2, 2019

Best Mortgage Broker Edmonton

Features of Program

  • Minimum 5% down payment required from savings, RRSPs, Gift. Borrowed down payments are not eligible
  • 5% can be shared on existing homes and 10% on new construction homes. This is given via an interest free loan
  • Household income cannot exceed $120,000
  • The combined mortgage and incentive amount cannot exceed 4 times the qualified income amount
  • The loan must be paid back when the property is sold or after 25 years and repayment amount is based on the property's sale price
  • The Incentive is registered as a second mortgage on the title and therefore may restrict any further borrowing eg. HELOC
  • There is no option for monthly installment payments, the loan must be repaid in one payment / lump sum either when the home is sold or after 25 years. The incentive can also be repaid anytime without penalties prior to the 25 years
  • Available for insured mortgages only eg. CMHC, Genworth and Canada Guaranty
  • The insurance premium payable is based on the total amount of down payment, eg. if you put a total of 10% down payment (5% savings and 5% incentive) the insurer premium is calculated on amount of total down payment eg. 3.1% of the total loan amount

You are considered a first-time homebuyer if you meet one of the following criteria:

  • You have never purchased a home before
  • You have gone through a breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements).
  • In the last 4 years, you did not occupy a home that you or your current spouse or common-law partner owned
  • As long as one applicant on the mortgage is eligible as a First Time Home Buyer your mortgage is eligible for the FTHB Incentive

Please contact me to discuss whether the new FTHB Incentive is right for you.