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For many young people, their dream is to own their first home, but doing so can be quite a difficult undertaking when it can often be hard to save money with the rising cost of housing prices. With this, the Canadian government is taking steps to help first-time homebuyers make their dream a reality while making it more accessible and affordable. 

The First Time Home Buyer Incentive 

This program allows first time home buyers to purchase a home under the new program where eligible homebuyers could share the cost of buying a home with the Canada Mortgage and Housing Corporation (CMHC). This program would help reduce the price of a buyer’s insured mortgage and reduce their monthly payment. With these lowered payments, it would allow the buyers to put that money towards things that matter to them. 

Who This Would Help 

  • Canadians that are first-time homeowners that make less than $120,000 a year 
  • With the help of CMHC, it would provide around 5% of the value of the home for a first-time homeowner with the use of shared investment. 
  • When buying a newly constructed home, the incentive would increase to 10%
  • An increase from $25,000 to $35,000 would allow first-time homebuyers to have more access to their Registered Retirement Savings Plan to purchase a home. 

With this incentive program, a first-time homeowner may not have to save as much as they would for a down payment and also be able to make affordable payments based on their mortgage. This would help to bring down the cost of a mortgage as well. 


The incentive must be repaid after 25 years or when the property has been sold depending on which one comes first. There is also no pre-payment penalty if the homeowner decides to pay in full before the 25 year period is up. 

When deciding to sell the homebuyer will be required to pay based on what is determined to be the property’s fair market value. So if they paid 5% when they bought the home, they would repay 5% of the value when they decided to sell. If they spent 10%, they would pay 10% at the time of sale.