What Is the First Time Home Buyers Incentive Program?
The first-time home buyer’s incentive is a shared equity program with the government who will loan you 5% - 10% of the homes purchase price as an additional source of down payment.
- Pros
- Helps you qualify.
- Brings your monthly payments down.
- Interest free loan
- In the event of depreciation at time of sale, the government will cover up to a max 8% of that loss.
- Cons
- In the event of appreciation at time of sale, the government will see up to a max 8% of that gain.
- This loan is to be paid back within 25 years or at time of sale, refinance, port, or release of security. You can also pay back the loan in advance of 25 years at no extra cost.
- Criteria
- Total annual household income must not exceed $120,000 / $150,000 if the home is in Toronto, Vancouver, or Victoria.
- Your total borrowing is no more than 4x your qualifying income / 4.5x if the home is in Toronto, Vancouver, or Victoria.
- You & your partner are first time home buyers.
- You are a Canadian citizen, permanent resident, or non-permanent resident with a work visa.
- You meet the minimum required down payment of less than 20%.
- Property Type
- New construction = 5% or 10%
- Existing home = 5%
- New & existing mobile / manufactured home = 5%