The CMHC First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage costs by the government contributing to part of the home purchase. Basically, it's a shared equity mortgage with the Canadian Government.

The government implemented changes in the Spring of 2021 to help more buyers to qualify for the program.

Some current qualifications for this incentive are:

  1. You will need to have the minimum mortgage down payment requirement
  2. Your maximum qualifying income is no more than $120,000 (or $150,000 if the home you are purchasing is in Toronto, Vancouver, or Victoria).
  3. Your total borrowing limit has increased from 4 to to 4.5 times the qualifying income If you meet these qualifications, you can apply for a 5% or 10% shared equity mortgage with the Government of Canada.
  4. At least one borrower must be a first-time homebuyer, as per the definition on the Government's website
  5. Intended for buyers who intend on living in the home.

The incentive is not interest bearing and does not require ongoing repayments. The government will provide up to 5% for resale homes, and up to 10% for presale purchases. You’ll have to repay the incentive after 25 years or if the property is sold (you can also repay the incentive anytime before).

Your payback amount will be affected by the change in market value of the property. For example, if it goes up 10%, you’ll have to payback 10% more than the incentive amount (and likewise if it goes down 10%). View all the First-Time Home Buyer Incentive details including examples.

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