Our Blog - DreamHouse Mortgage

 March 8 2021     Posted by Rajakeerthy Parswanna Vijayakumar


The First-Time Home Buyer Incentive helps people across Canada purchase their first home. The program offers 5 or 10% of the home’s purchase price to put towards a down payment. This addition to your down payment lowers your mortgage carrying costs, making homeownership more affordable.


The First-Time Home Buyer Incentive makes it easier for you to buy a home and lower your monthly mortgage payments. This program is a shared equity mortgage, which means the government shares in any gains of the property value or if your property value goes down, your repayment to the government will be less than the amount borrowed.

The loan must be returned back within 25 years from the date borrowed or when your house is sold, whichever occurs first.

Below are some examples:

  • If you are eligible and buying a pre-owned home, you may receive a 5% incentive of the home’s purchase price of $300,000, or $15,000. If your home value increases to $400,000 your payback would be 5% of the current value or $20,000.
  • If you are eligible and buying a brand new home, you receive a 10% incentive of the home’s purchase price of $300,000, or $30,000 and your home value decreases to $200,000, your repayment value will be 10% of the current value or $20,000.

 In order to qualify for a First Time Home Buyer Incentive, below are the requirements:


  • you or your partner have not owned a home before in the past 4 years
  • household income of less than $120,000
  • you are on work permit, permanent resident or citizen of Canada
  • have your own source of funds for down payment
  • Down payment is less than 20% of property value and qualify for mortgage loan insurance premium from any of the three mortgage default insurance providers in Canada which are CMHC, Canada Guaranty or Sagen (Previously known as Genworth).

The property types that are eligible for incentive are:

  • New Construction - Incentive amount 5% or 10%
  • Existing Home - Incentive amount 5%
  • New and re-sale mobile homes – Incentive amount 5%

Types of residential properties include:

  • Single family homes
  • Semi-detached homes
  • Duplexes
  • Triplexes
  • Fourplexes
  • Town Homes
  • Condominium units
  • Mobile homes

The Incentive may be associated with additional costs such as legal fees, appraisal fees property insurance premiums and any applicable fees.


Contact DreamHouse Mortgage experts who will:

  1. Educate you regarding the FTHBI Program for your home mortgage 
  2. Help in Approval of your mortgage
  3. Guide and Support you at each step of the mortgage approval process
  4. Once you’ve been pre-approved for a mortgage, found the home you’re looking for and determined you’re eligible to apply for the incentive and it’s time to apply, the mortgage specialist will submit your live mortgage approval application to the lender.
  5. Contact DreamHouse Mortgage Specialists and we will help you out to apply for this First-Time Homebuyer Incentive program!




Bookmark and Share