First-Time Home Buyer Incentive program

Your Edmonton Mortgage Broker: Natalie Wellings

Important Update: 

·       This program is being discontinued on March 21, 2024 (midnight ET). 

There are now some great programs offered by the government to help you out.

The First-Time Home Buyer Incentive program is an initiative created by the Government of Canada to assist with housing affordability. The program works as a second mortgage where the loan is interest and payment free and is repayable in 25 years, or when the property is sold.

Here are some basic facts regarding the program:

  • At least ONE buyer on the deal must meet the definition of First Time Buyer.
  • Total qualifying income must be less than $120k/year.
  • The combined mortgage and incentive amount cannot exceed four times the total qualifying income. If a household earns $120,000 the maximum mortgage and incentive amount cannot exceed $480,000. In this scenario the maximum purchase price would be $505,000 (assuming a minimum down payment). This would result in a monthly savings of approximately $140 on the mortgage payment.
  • The maximum mortgage amount plus incentive is $480,000.
  • Borrowers must put a minimum of 5% down and the government will lend an additional 5% (10% on a newly constructed home).
  • The loan must be repaid in 25 years or the property is sold.
  • The incentive will be registered as a second mortgage on the property.
  • The loan will be interest free AND PAYMENT FREE but in exchange the government will get an equity stake in the property. When the property is sold the government will receive a payback amount of either 5% or 10% of the sale price of the home, depending on which incentive amount was originally taken.
  • Program information available at


The Government of Canada has made a change to the First Time Home Buyers Incentive program which offers a payment and interest free loan to qualified home buyers.

Previously, when the incentive was repaid, the borrower would have to repay 5% or 10% of the value of the home at the time of repayment (depending on how much they originally borrowed). The government has made a change to the program which now caps the amount of repayment. Homeowners will now be required to repay the incentive on a maximum gain of 8% of the homes value per year from the date of advance to the time of repayment.

In addition, the government will limit its share in the potential depreciation of the home. The maximum loss will be capped at 8% per year, as well.

Please see the link for more information on the program changes:

Please contact me directly and I would be more than happy to discuss the potential pros and cons of this incentive as well as your eligibility! 

Here are some links to more detailed information on the program:

Eligibility Calculator

Product Highlight Sheet

Journey Map

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