How do I qualify for the First-Time Home Buyer Incentive?
Want the government to chip in on your down payment? Here’s how to qualify for the First-Time Home Buyer Incentive—and lock in a bigger, safer path to homeownership.
What the First-Time Home Buyer Incentive Actually Is
The First-Time Home Buyer Incentive (FTHBI) is a shared-equity program backed by the federal government. It lowers your monthly mortgage payments by giving you a percentage of your home purchase price. You repay the same percentage when you sell or refinance, based on the market value at that time.
Quick checklist: Who can qualify
- You must be a first-time homebuyer (or meet specific previous-ownership exceptions).
- You must be a Canadian citizen, permanent resident, or non-permanent resident who qualifies under program rules.
- The home must be your primary residence.
- Household income must be at or below the program cap (currently $120,000).
- Your mortgage must be insured; minimum down payment rules still apply.
- You must meet lender credit and mortgage stress-test requirements.
Step-by-step: How to qualify right now
- Confirm first-time buyer status. If you haven’t owned a home in the last four years you usually qualify. Exceptions exist for people with a disability, survivors of relationship breakdown, or those who owned property but did not occupy it.
- Verify household income. Add combined incomes of all buyers. Keep it at or below $120,000 to remain eligible.
- Save minimum down payment. The incentive does not replace your down payment. You still need at least 5% for homes under $500,000 and higher for pricier homes, per mortgage insurance rules.
- Get pre-approved. Lenders will verify credit, income, and apply the mortgage stress test. Pre-approval clarifies what you can afford with the incentive applied.
- Choose eligible property. The home must be move-in ready as your primary residence. New builds may qualify for a higher incentive percentage.
- Apply through your lender. The incentive is delivered via your mortgage lender and administered by CMHC. Expect additional paperwork and appraisal steps.
- Plan the repayment. Repay the incentive when you sell, refinance, or at the 25-year mark. Repayment equals the percentage you received of the home’s market value at that time.
Common pitfalls to avoid
- Assuming the incentive is a grant. It’s a shared-equity loan that must be repaid.
- Ignoring appraisal risk. If home values rise, repayment increases; if they fall, repayment decreases.
- Failing mortgage stress test. You must still meet lender qualification rules.
Ready to qualify? Get local help
Programs change. Limits and eligibility nuances matter. Work with a local expert who runs the math, reviews lender choices, and completes the application fast.
For a free eligibility check and clear steps to qualify, email tony@sousasells.ca or call 416-477-2620. Visit https://www.sousasells.ca to book a consult. Tony Sousa specializes in first-time buyer programs and will map the fastest route to your home.
