Understanding the new First-Time Home Buyer Incentive (FTHBI)

As of September 2nd 2019, the new FTHBI has launched and is now in effect.

Here is a summary of key points:

  • The closing date must be on or after November 1st, 2019.
  • You must have at least 5% down payment from own resources, gifts are acceptable.
  • Qualifying income cannot exceed $120,000 per year, combined for all borrowers.
  • The maximum mortgage amount cannot exceed 4 x your combined annual income.
  • You must be considered a first-time home buyer.
  • The Government of Canada may offer 5% for resale homes and 10% for new construction.
  • You may repay the incentive anytime.
  • The incentive must be paid when the house is sold or by the 25th year, whichever is first.
  • The repayment amount is based on the fair market value (not the original amount).
  • This incentive is not applicable for rental purchases.
  • The incentive does not accrue interest and there aren’t any payments required.

This is an insured program meaning, those purchases with less than 20% down payment. The insurer premium is based on the down payment that you make, the FTHBI will help by making the mortgage payment lower with the additional down payment.

There are additional details so please contact us for more information and to see if you qualify for this new incentive.