First-time Home Buyer Incentive Program to Boost Affordability of Home Ownership

Starting September 2nd, first-time buyers (and previous homeowners impacted by marital breakdowns) can apply for a new government incentive. The aim of the program is to help make home ownership more affordable by reducing monthly mortgage costs.

Here are a few highlights of the incentive program:

Down payment:

•Buyers must have a minimum of 5% down (from their own resources, including borrowing from their RRSPs)
•Government will top up down payment another 5% (for resale homes) or 10% (for new construction) as shared equity mortgage (can be paid back at any time as a lump sum or must be paid back within 25 years). Although no interest is charged, the amount to be repaid will appreciate (or depreciate) with the total value of your home. An appraisal may be required at time of payout to establish value.


•First-time buyers or at least one party must be a first-time buyer or divorced/separated (marital breakdown or common-law relationship breakdown); combined income up to $120,000/year
•Loan must be eligible for mortgage loan insurance (through Canada Guaranty, CMHC or Genworth)
Property must be owner-occupied (investment properties ineligible)
•Available to Canadian citizens, permanent residents and non-permanent residents legally authorized to work in Canada

Property Budget:

•The mortgage plus incentive amount cannot exceed 4X total qualifying income (provided total and gross debt service guidelines)


•Applications can be submitted starting September 2nd, with property possession as early as November 1, 2019

A skilled lending representative or mortgage broker can provide additional information and get you started – I am happy to refer you to professionals I know and trust. For more information on the on this new National Housing Strategy program, click here.