• 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


  • 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.

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