• Clint Peters

First Time Home Buyers Incentive

Updated: May 10


The first time home buyers incentive is a government program that helps qualifying first time home buyers purchase their first home. To put it simply, the Canadian Government provides you a percentage of the home's value towards your downpayment, and you are required to pay back that same percentage value after you sell the home or within a 25 year window.

This addition to your downpayment reduces the carrying costs of your mortgage, making home ownership more affordable.



With this incentive, Government of Canada provides:

  • 5% or 10% for a first-time buyer’s purchase of a newly constructed home

  • 5% for a first-time buyer’s purchase of a resale (existing) home

  • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home


You're considered a first time home buyer if:



  • you have never purchased a home before



  • you did not occupy a home that you or your current spouse or common-law partner owned in the last 4 years (the 4-year period begins on January 1 of the fourth year before the Incentive is funded and ends 31 days before the date the Incentive is fund


ed)

  • you have recently experienced the breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements)


Eligibility requirements:


your total annual qualifying income doesn’t exceed $120,000 ($150,000 if the home you are purchasing is in Toronto, Vancouver, or Victoria)

  • your total borrowing is no more than 4 times your qualifying income (4.5 times if the home you are purchasing is in Toronto, Vancouver or Victoria )

  • you or your partner are a first-time homebuyer


you are a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada

  • you meet the minimum down payment requirements with traditional funds (savings, withdrawal/collapse of a Registered Retirement Savings Plan (RRSP), or a non-repayable financial gift from a relative/immediate family member)

use the Government's calculator to see if you qualify.





To learn more about the First Time Home Buyers Incentive, visit the Government of Canada's information page.


11 views0 comments

Recent Posts

See All