5 Year Fixed 4.89%

5 Year Variable 6.10%

First Time Home Buyers Incentive

The First-Time Home Buyer Incentive helps qualified first-time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens. The program will offer buyers a 5% down payment incentive, 10% for new construction homes, to add to their down payment amount.

Applications can be submitted to take advantage of this program starting September 2, 2019 with closing dates scheduled November 1, 2019 or later.

What is a First Time Home Buyer (FTHB)?

You are considered a first-time home buyer if you meet one of following qualifications:

•             you have never purchased a home before

•             you’ve recently experienced a breakdown of a marriage or common-law partnership

•             in the last 4 years, you did not occupy a home that you or your current spouse or common-law partner owned

Under the program the maximum allowable qualifying income, before taxes and deductions, is $120,000.

What is the maximum purchase price?

To use the First Time Home Buyers Incentive program the maximum purchase price is based on 4 times your annual household income (not to exceed $120,000) plus the amount you have for down-payment. The maximum purchase price cannot exceed $560,000.

What are the terms of repayment? 

The first-time home buyer will be required to repay the Incentive amount after 25 years or when the property is sold, whichever comes first. The home buyer can also repay the Incentive in full at any time, without a pre-payment penalty. Refinancing of the first mortgage will not trigger repayment.

Before selling the property, the home buyer must obtain approval of the sale from the Program Administrator. For more information consult the Operational Policy Manual, section 7.13.

How is repayment calculated?

If a homebuyer receives a 5% Incentive, the homebuyer will repay 5% of the home’s value at repayment.

If a homebuyer receives a 10% Incentive, the homebuyer will repay 10% of the home’s value at repayment.

Repayment is based on the property’s fair market value at the point in time where repayment is required.

Are there other costs involved with the First-Time Homebuyer Incentive?

Additional legal fees: Your lawyer is closing 2 mortgages so you may be charged higher fees.

Appraisal fees: To repay your incentive, you may need to have an appraisal done to value determine the fair market value of your home.

Other fees: Additional fees may be incurred throughout the life cycle of the incentive, like switching your first mortgage to a new lender or refinancing your first mortgage.


More information about the federal First Time Home Buyers Initiative can be found on their website at https://www.placetocallhome.ca