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With the help of the first-time buyer incentive, people across Canada can now purchase houses as first-time buyers. House ownership has become more affordable since the mortgage carrying cost has become lower than before. The incentive offered a down payment of 5% or 10% of the price placed on purchasing the home.

The expanded program is now available.

Qualifying annual income has been increased from $150,000 to $120,000. First-time buyers from the cities of Victoria, Toronto, and Vancouver can now have eligibility for those benefits. They can also borrow up to 4.5 times the qualifying salary, up from the previous 4.0.

Frequently asked questions (FAQ)

  • What is the incentive?

The first-time buyer incentive is simply a share of mortgage equity between the first-time buyer of a house and the government of Canada. The first-time buyer also gets a loan from the government to purchase the house, and then they can repay it at any time. The pay should be up to 25 years.

  • Am I eligible for the incentive?

If you want to know about your eligibility for the first-time homebuyer incentive, the following points will guide you.

  • You must be a Canadian citizen or be eligible to work there even if you are not a citizen.
  • At least one person in your house must be a first-time homebuyer.
  • If the home is in Vancouver, Toronto, or Victoria, then your home’s qualifying income should not exceed $150,000.
  • If your home is in Toronto, Vancouver, or Victoria, your overall debt should not exceed four times your qualifying salary.

The incentive is a second mortgage on your home. Your home must be eligible under the government of Canada’s rules. Your first mortgage must be subject to the mortgage loan insurance premium. The MLIP is only calculated as the amount of the first mortgage loan divided by the price of the purchase. The following shows how the type of house to be purchased plays a key factor in how much loan you will receive.



  • You might want an assessment aimed at assessing the current value of a home to repay your incentive.
  • Insurance rates for homeowners’ insurance: Extra fees may be imposed to account for a second mortgage on the property. For further information, speak with your insurance agent or source.
  • Charges not listed above: Further fees may apply at any time during the incentive’s entire lifecycle, such as moving your initial loan to a lender or financing your first loan.
  • Because your attorney is shutting down your mortgage loan at the same time, you may face additional legal fees.
  • How Do I Apply for the Incentive?

Your eligibility has been checked, your mortgage loan approval has been done, and you have found a home. You can now apply as a first-time homebuyer. You will have to either fill out the forms under the SEM Attestation and consent form or the FTHBI-SEM information message. Then give those who will lend you the house and they will submit it on your behalf. The other copy must be kept by the solicitor in charge of you. When you are accepted and receive your acceptance letter, you simply send your lawyer’s contact information two weeks before the closing date.

  • How do I repay the incentive?

This will be done after 25 years or when the home is resold. Home-buyers have the right to pay the entire amount at any time they are comfortable, even before that period of 25 years.

  • The incentive will be repaid if you transfer your mortgage.
  • A substantial discharge of insurance is regarded as a transaction, and the incentive would be returned.
  • You have had a bad breakup and want to buy out your co-borrower. If supplementary guaranteed funds are required, you must refund the incentive in total.
  • The incentive will be repaid if you transfer your mortgage.
  • A substantial discharge of insurance is regarded as a transaction, and the incentive would be returned.
  • How Do I Know If My Home Is in the Toronto, Victoria, or Vancouver Census Metropolitan Area?

You will have to email the CMHC authorities in Canada through their contact number. You can also use the tools in Canada for statistics.

  • Statistical Area Maps (PDFs)
  • Statistical Area Maps (INCENTIVE)
  • Statistical Area Classification List and Census Subdivisions
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