First-Time Home Buyer Incentive Guide: Eligibility, How It Worked and Program Updates
The First-Time Home Buyer Incentive (FTHBI) was a federal program introduced to help eligible Canadians reduce their monthly mortgage payments when purchasing their first home. The program provided a shared-equity mortgage with the Government of Canada, allowing qualified buyers to borrow a percentage of the home’s purchase price without making ongoing interest payments.
Although the program has now ended, many Canadians continue to search for information about how it worked, who qualified and what options remain available for first-time home buyers.
What Was the First-Time Home Buyer Incentive?
The First-Time Home Buyer Incentive was launched by the Government of Canada to make homeownership more affordable for eligible Canadians. Instead of providing a grant, the government invested a percentage of the home’s purchase price through a shared-equity mortgage.
Homeowners repaid the same percentage of the home’s market value when they sold the property or chose to repay the incentive.
| Program Feature | Details |
|---|---|
| Program type | Shared-equity mortgage |
| Administered by | Government of Canada |
| Interest payments | None on the incentive amount |
| New applications | No longer accepted |
Who Was Eligible?
When the program was available, applicants had to satisfy several eligibility requirements relating to income, borrowing limits, residency and first-time home buyer status.
| Eligibility Requirement | Required? |
|---|---|
| First-time home buyer | Yes |
| Income limits | Yes |
| Mortgage qualification | Yes |
| Eligible property | Yes |
How Did the Incentive Work?
Eligible buyers received a percentage of the home’s purchase price from the Government of Canada. Because the government shared in the home’s value, repayment was based on the property’s market value rather than the original amount received.
| Program Element | How It Worked |
|---|---|
| Government contribution | Percentage of purchase price |
| Monthly interest | None |
| Repayment | Based on market value |
| Maximum repayment period | Up to 25 years or upon sale |
Why Did the Program End?
The Government of Canada closed the First-Time Home Buyer Incentive to new applications. While the program is no longer available, several other federal and provincial programs continue to support first-time home buyers across Canada.
What Happened to Existing Participants?
Although the First-Time Home Buyer Incentive (FTHBI) no longer accepts new applications, homeowners who already received the incentive remain subject to the original terms of their agreement with the Government of Canada.
Participants must repay the government’s share when they sell the property, after 25 years or if they choose to repay the incentive earlier.
| Situation | What Happens? |
|---|---|
| Home is sold | Government share is repaid. |
| Voluntary early repayment | Permitted. |
| 25-year maximum term | Repayment required. |
| Home value changes | Repayment changes accordingly. |
What Programs Are Available Instead?
Although the First-Time Home Buyer Incentive has ended, several federal and provincial programs continue to help Canadians purchase their first home. These may include tax credits, savings accounts and other home ownership incentives.
| Alternative Program | Available? |
|---|---|
| First Home Savings Account (FHSA) | Yes |
| Home Buyers’ Plan (HBP) | Yes |
| Home Buyers’ Amount | Yes |
| Provincial housing programs | May apply |
Should First-Time Buyers Still Research the Program?
Yes. Although the program is closed, understanding how it worked helps explain references found in mortgage documents, financial articles and government publications. Existing participants also continue to be affected by the program’s repayment rules.
| Reason to Learn About It | Relevant? |
|---|---|
| Existing homeowners | Yes. |
| Historical government program | Yes. |
| Mortgage planning | Helpful. |
| Alternative programs | Yes. |
What Should Current Participants Do?
Homeowners who previously received the incentive should keep records of their agreement, understand the repayment rules and review the official Government of Canada guidance before selling their property or repaying the incentive.
| Recommendation | Why? |
|---|---|
| Keep your agreement | Important for repayment. |
| Review repayment rules | Understand your obligations. |
| Monitor property value | Repayment depends on market value. |
| Consult official guidance | Stay informed. |
Key Takeaways
Although the First-Time Home Buyer Incentive is no longer available to new applicants, it remains an important part of Canada’s recent housing policy. Existing participants should understand their repayment obligations, while new buyers should focus on current federal and provincial home ownership programs.
- The program is permanently closed to new applications.
- Existing participants must follow the original agreement.
- Repayment is based on the home’s market value.
- Alternative home buyer programs remain available.
- Always review the latest Government of Canada guidance.
Can Newcomers to Canada Benefit from Other Home Buying Programs?
Yes. Although the First-Time Home Buyer Incentive (FTHBI) is no longer accepting new applications, newcomers to Canada may still qualify for other federal or provincial home buying programs if they meet the applicable eligibility requirements.
Available programs may include tax credits, registered savings accounts and other incentives designed to support eligible first-time home buyers.
| Program Type | May Be Available? |
|---|---|
| First Home Savings Account (FHSA) | Yes |
| Home Buyers’ Plan (HBP) | Yes |
| Home Buyers’ Amount | Yes |
| Provincial home buyer programs | May apply |
Where Can You Find Current Home Buying Assistance?
The Government of Canada and provincial governments continue to publish information about programs available to first-time home buyers. Reviewing official resources is the best way to identify the assistance that may apply to your situation.
| Information Available | Official Source? |
|---|---|
| Federal home buyer programs | Yes |
| Provincial housing incentives | Yes |
| Tax credits | Yes |
| Savings programs | Yes |
Understanding the First-Time Home Buyer Incentive Today
Although the First-Time Home Buyer Incentive is now closed, it remains an important part of Canada’s recent housing policy. Existing participants continue to follow the repayment terms of their agreements, while prospective buyers should focus on active housing assistance programs.
Understanding how the incentive worked also helps explain why many current housing initiatives emphasize affordability, savings and responsible home ownership rather than shared-equity financing.
| Best Practice | Benefit |
|---|---|
| Research current programs | Find available financial support. |
| Understand past incentive rules | Helpful for existing participants. |
| Review official housing resources | Stay informed about new programs. |
| Compare available incentives | Choose the option that best fits your needs. |
Related Northbly Guides
- Canada Housing Benefit Eligibility Guide
- How to Apply for the Canada Housing Benefit
- Canada Housing Benefit Income Limits
- Canada Housing Benefits Guide
- Canada Benefits Guide
- Home Buyers’ Plan (HBP) Guide
Frequently Asked Questions
Is the First-Time Home Buyer Incentive still available?
No. The First-Time Home Buyer Incentive (FTHBI) is permanently closed to new applications. Existing participants remain subject to the terms of their original agreements.
What was the First-Time Home Buyer Incentive?
It was a federal shared-equity mortgage program that helped eligible first-time home buyers reduce their monthly mortgage payments by providing a percentage of the home’s purchase price.
Did the government charge interest on the incentive?
No. The incentive itself did not require ongoing interest payments. However, repayment was based on the home’s market value when the incentive was repaid.
When did participants have to repay the incentive?
Repayment was generally required when the property was sold, after 25 years or whenever the homeowner chose to repay the government’s shared-equity investment earlier.
How was the repayment amount calculated?
The repayment amount was based on the same ownership percentage originally provided by the Government of Canada, applied to the property’s market value at the time of repayment.
Can new home buyers still apply?
No. The program no longer accepts new applications. Canadians purchasing their first home should instead explore current federal and provincial home ownership programs.
What programs replaced the First-Time Home Buyer Incentive?
Although there is no direct replacement, buyers may still benefit from programs such as the First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP), the Home Buyers’ Amount and provincial housing initiatives.
Can existing participants repay the incentive early?
Yes. Homeowners who previously received the incentive may repay the government’s share before selling their home, subject to the program’s official repayment rules.
Can newcomers to Canada use current home buying programs?
Yes. Newcomers who meet the eligibility requirements may qualify for several current federal or provincial home buying programs even though the First-Time Home Buyer Incentive has ended.
Should I still learn about the First-Time Home Buyer Incentive?
Yes. Existing participants continue to follow the program’s repayment rules, and understanding how the incentive worked can help explain references in mortgage documents and housing resources.
Can the Government of Canada introduce similar programs in the future?
Housing policies may change over time. The Government of Canada may introduce new affordability measures or update existing home ownership programs in the future.
Where can I find official information about the former First-Time Home Buyer Incentive?
The Government of Canada continues to provide information for existing participants, including repayment rules and guidance for homeowners who previously received the incentive.
Official Government Resources
For historical information about the First-Time Home Buyer Incentive and current federal home buying programs, consult the official Government of Canada resources below.
- First-Time Home Buyer Incentive (Archived Information)
- First Home Savings Account (FHSA)
- Home Buyers’ Plan (HBP)
- Government of Canada Benefits
Official Government Information
The First-Time Home Buyer Incentive is permanently closed to new applications. Existing participants remain subject to the original program agreement and repayment rules. For current home buying assistance, consult the latest Government of Canada and provincial housing programs.
Disclaimer
Northbly publishes independent informational content to help readers better understand Canadian government programs. Although every effort is made to keep this guide accurate and up to date, housing policies and government programs may change over time.
This article is provided for general informational purposes only and should not be considered legal, financial or mortgage advice. For questions about your individual First-Time Home Buyer Incentive agreement or current home buying programs, consult the official Government of Canada resources or a qualified financial professional.
