Buying your first home is exciting, exhilarating, and sometimes a little confusing. Which kind of mortgage is best? Should you try to save a bigger deposit or lower your budget slightly? More importantly, as a first-time homebuyer, do you qualify for Canada’s First-Time Home Buyer’s Incentive?

Our brokers get all those questions and a whole lot more. So, here’s what you need to know about what the first-time homebuyer incentive is, who can get it, and what you need to apply.

What Is the Canada First-Time Home Buyer Incentive?

The Government of Canada would like to see more people living in homes they own. The First Time Home Buyer Incentive is a program that offers first-time homebuyers between 5 and 10% of the home’s purchase price as a down payment. This lowers their mortgage cost, increases the value they might qualify for, and decreases their fees and interest over time.


Is It a Loan?

Not in the traditional sense. Instead of paying back the incentive every month like you do your mortgage, you only need to repay the same percentage when you sell it (or within 25 years if you don’t sell.) It is also good to know that the loan is registered as a second mortgage behind the first mortgage.

So, if you purchase a home for $200,000 with a 10% incentive and then sell it for $400,000, you will receive $20,000 from the government as the incentive and repay $40,000 from the sale.


Why Does the Government Offer This Incentive?

Homeownership is one of the building blocks of financial stability. The Government of Canada wants to see more people in homes they own because it’s a sign of a solid middle class. That’s a good sign for the economy!

Homes in Canada can be pretty pricey, depending on where you want to buy, so the best way to boost homeownership and build the middle class is to offer programs like this that make it easier for people to buy them.

Who Qualifies for the First-Time Home Buyer Incentive?

Of course, as the name suggests, to qualify for the First Time Home Buyer’s Incentive, you need to be buying your first home. You also need to earn less than the maximum earning threshold, which varies between $120,000 per year and $150,000 depending on where you want to buy your home. This threshold is based on the average cost for homes in the area.


How Do I Apply for the First-Time Home Buyer Incentive?

If you think you qualify for the First Time Home Buyer’s Incentive, you can talk to our brokers to confirm and get more information. Our team can help you apply for this incentive to afford to get more houses for your money with your first-time purchase. We’re always happy to answer any questions you might have about home buying and mortgages. We love seeing more Canadians in homes they can truly call their own. You can contact us by calling 403-942-4099 or contacting one of our team members at