How do I qualify for the First-Time Home Buyer Incentive?

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 [email protected] 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.