Summary of FTHBI Program
| Incentive | 5% for existing homes, 5% or 10% for new builds |
| Benefit | Reduces monthly mortgage payments |
| Repayment | No ongoing payments, non-interest bearing, repayable at any time without penalty |
| Eligibility | First-time homebuyers, income and property type restrictions apply |
| Property Types | New construction, re-sale home, new and re-sale mobile/manufactured homes |
| Equity Sharing | Government shares in the property’s gain or loss |
| Program Timeline | Extended to March 31, 2025 |
Navigating the path to purchasing your first home in Canada can feel overwhelming, especially with the financial hurdles along the way. Fortunately, the First-Time Home Buyer Incentive (FTHBI) is designed to make homeownership more accessible and affordable for eligible Canadians. Here’s everything you need to know about how this program can help you achieve your dream of owning a home.
Understanding the FTHBI Program
The FTHBI offers a unique opportunity for first-time homebuyers to reduce their monthly mortgage payments without increasing their down payment. Through a form of shared equity mortgage with the Government of Canada, eligible buyers can receive 5% of the purchase price for existing homes, or 5% to 10% for new constructions.
Key Benefits
Lower Monthly Payments: The primary advantage of the FTHBI is the reduction in monthly mortgage payments, making homeownership more affordable.
Flexible Repayment: There are no ongoing payments required, and the incentive is not interest-bearing. Homeowners can repay the incentive at any time without facing a pre-payment penalty, offering significant flexibility.
Eligibility Criteria
To qualify for the FTHBI, you must be a first-time homebuyer, which means you have never purchased a home before, or you have gone through a breakdown of marriage or common-law partnership. Additionally, the total qualifying income for the household must not exceed specific thresholds, and the property must meet certain criteria.
The First-Time Home Buyer Incentive is a groundbreaking tool in the Canadian real estate market, designed to make the dream of homeownership a reality for more Canadians. By offering a shared equity mortgage, the program provides a practical solution to the challenge of high monthly payments, with flexible repayment options tailored to first-time buyers’ needs. If you’re on the path to purchasing your first home, the FTHBI could be the key to unlocking the door to your future home.
Ready to learn more about how the First-Time Home Buyer Incentive can help you? Call today for detailed information and start planning your journey to homeownership today.