First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive is a program by the Canadian Government to help first time home buyers get into the market with an interest-free loan. They will top up your down payment by 5% on most homes, or 10%, on new builds. The loan isn’t due until you sell the house, or after 25 years.

How it helps:

The larger downpayment results in lower overall mortgage costs by lowering monthly payments. There is no interest or regular payments, and it may be repaid without pre-payment penalties at any time. When repaying the loan, the value is calculated on the value of the house at that time (5% or 10%), meaning the buyer is partially protected if the market drops.

Who is it for?

  • First-time home buyers
  • Household income must be less than $120,000
  • The downpayment must be 5% or more.
  • The downpayment must be less than 20%

How much can I afford?

The maximum purchase price with this program is 4x your annual household income (to a max of $120K). The theoretical maximum mortgage under this program is currently $480,000. Keep in mind; you may qualify for more without the program. Usually, the maximum is 6x your annual household income.

More changes are coming.

The Government of Canada has acknowledged that in markets like Vancouver & Toronto, the program is not viable with current housing prices. They have pledged to increase the cap $750,000 in specific markets, but details have not been announced as of 09/17/19.

How do I apply?

Contact True North Mortgage to take advantage of fantastic opportunity. There are several required documents that we can help walk you through and submit on your behalf.


How much can you save

You can calculate your personal savings at PlaceToCallHome.ca/FTHBI

The maximum allowed

10% (new build) incentive on $533,329 purchase you could save $268/mo or $3,221 Annually.

Without incentive With incentive
Down Payment $53,329
First Time Home Buyer Incentive $53,330
Mortgage Amount $426,640
Mortgage Insurance $11,946
Total Mortgage Amount $438,586
Monthly Mortgage Payment (2.39%) $1,943

An average - Based on average Canadian household income (25-34)

5% (existing home) incentive on $322,080 purchase you could save $86/mo or $1,029 Annually.

Without incentive With incentive
Down Payment $16,104
First Time Home Buyer Incentive $16,104
Mortgage Amount $289,872
Mortgage Insurance $8,986
Total Mortgage Amount $298,858
Monthly Mortgage Payment (2.39%) $1,324

We'll get you the best mortgage