

First-Time Home Buyer Incentive
In March of 2019 the federal government offered help to young homebuyers, many of whom find it very difficult to afford to purchase in some of our more expensive cities.
There were two measures targeted at first-time homebuyers:
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Maximum Withdrawal from RRSPs was Increased (March 19 2019)
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The simplest to understand is the $10,000 increase in the federal Home Buyers' Plan (HBP) maximum tax-free withdrawal from RRSPs to $35,000, effective immediately. This allowable withdrawal for first-time buyers will now also apply to people experiencing the breakdown of a marriage or common-law partnership who don't meet the usual requirement of being a first-time homebuyer.
What about the Downpayment Program (WATCH THIS VIDEO ⬇)

Learn About the Program
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Calculate your maximum purchase price and what you could receive as an incentive. -
Review program details. -
Start looking for a home.
Determine Your Eligibility
- Get Pre-Approved for a Mortgage.
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Review program requirements and ensure that this is for you.
Choose Your Incentive and Apply
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Review the details and select the incentive that is right for you. -
Read, print and sign the application documents (coming soon) and take them to your lender. -
Application submissions will be completed by your lender. -
Notify your solicitor. -
Contact Us to activate (see "How do I apply?").
Repayment
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Early payout options in full are available at any point in the duration of the 25 years. -
Learn more about fair market value and how this will help you calculate repayment. -
Calculate the fair market value of your home and multiply it by the percentage of the Incentive you received.
How it all works..
More Information about the Program:
About the First-Time Home Buyer Incentive
There are a few qualifiers to apply for this incentive:
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you need to have the minimum down payment to be eligible -
your maximum qualifying income is no more than $120,000 -
your total borrowing is limited to 4 times the qualifying income
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5% for a first-time buyer’s purchase of a re-sale home -
5% or 10% for a first-time buyer’s purchase of a new construction
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You receive a 5% incentive of the home’s purchase price of $200,000, or $10,000. If your home value increases to $300,000 your payback would be 5% of the current value or $15,000. -
You receive a 10% incentive of the home’s purchase price of $200,000, or $20,000 and your home value decreases to $150,000, your repayment value will be 10% of the current value or $15,000.
Why Use the First-Time Home Buyer Incentive?
What Kind of Property Can I Purchase?
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new construction -
re-sale home -
new and re-sale mobile/manufactured homes
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single family homes -
semi-detached homes -
duplex -
triplex -
fourplex -
town houses -
condominium units
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Yes, new or re-sale mobile homes are eligible for a maximum Incentive of 5%. Mobile/manufactured homes will be eligible for the Incentive where the unit is situated on either owned or leased land.
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No. The incentive is to help first-time homebuyers purchase their first home with the intent to occupy the property. Investment properties are not eligible.

Who Can Sign Up?
Who can apply?
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Canadian citizens, permanent residents, and non-permanent residents who are legally authorized to work in Canada
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Borrowers must have a maximum qualifying income of $120,000
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Total qualifying income must be $120,000 per year or less -
This is subject to qualifying income requirements set out by lenders and mortgage loan insurers
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At least one borrower must be a first-time homebuyer, as per the definition below.
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annual salary (before taxes) -
investment income -
rental income
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You are considered a first-time homebuyer if you meet one of following qualifications:
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you have never purchased a home before -
you have gone through a breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements). -
in the last 4 years, you did not occupy a home that you or your current spouse or common-law partner owned
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if you purchase a home on March 31, 2016, the 4-year period begins on January 1, 2016 and ends on February 28, 2020 -
if you sold your home you lived in in 2014, you may be able to participate in 2019 or if you sold the home in 2015, you may be able to participate in 2020
What are the Mortgage Details?
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Total borrowing is limited to 4 times the qualifying income. The combined mortgage and Incentive amount cannot exceed four times the total qualifying income. The amount for the mortgage loan insurance premium is excluded from this calculation. -
The maximum threshold for debt service ratios are GDS 39% and TDS 44%. This is only applied on the first mortgage and is subject to requirements by lenders and mortgage loan insurers. -
The Incentive is a second mortgage on the title of the property. There are no regular principal payments. It isn’t interest bearing and has a maximum term of 25 years. -
The Government of Canada will share in the upside and downside of the property value upon repayment.
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Mortgages must be eligible for mortgage loan insurance through either Canada Guaranty, CMHC or Genworth. The first mortgage must be greater than 80% of the value of the property and is subject to a mortgage loan insurance premium. -
The premium is based on the loan-to-value ratio of the first mortgage only. That is, the first mortgage amount divided by the purchase price. The Incentive amount is included with the total down payment. -
Mortgage loan insurance premiums may vary depending on the mortgage loan insurer and may be subject to provincial taxes.
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Minimum down payment is 5% of the first $500,000 of the lending value and 10% of the lending value above $500,000. -
The minimum down payment must come from traditional down payment sources. -
Note: Unsecured personal loans or unsecured lines of credit used to satisfy minimum down payment requirements are not eligible for the program. -
Note: For 3-4 units properties, the minimum down payment is 10%."
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savings -
withdrawal/collapse of a registered retirement savings plan (RRSP) -
non-repayable financial gift from a relative
When Does Repayment Happen?
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If a homebuyer receives a 5%, the homebuyer will repay 5% of the home’s value at repayment. -
If a homebuyer receives a 10% Incentive, the homebuyer will repay 10% of the home’s value at repayment.
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The Program Administrator will work with borrowers who are experiencing financial hardship on a case-by-case basis to offer solutions to the repayment requirements.
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Additional legal fees: Your lawyer is closing 2 mortgages so you may be charged higher fees. -
Appraisal fees: To repay your incentive, you may need to have an appraisal done to value determine the fair market value of your home. -
Other fees: Additional fees may be incurred throughout the life cycle of the incentive, like switching your first mortgage to a new lender or refinancing your first mortgage.
Do you have examples?