Understanding the
First-time Homebuyer Incentive

As of September 2019, the Government of Canada is offering a shared-equity program where they will contribute an additional amount to go towards the purchase of your property (on top of your own down payment). This incentive is an interest-free loan that acts as a second mortgage on the title of the property. The amount they will contribute is dependent on the type of purchase you are looking to make:

For existing homes, the government will contribute an additional 5 percent towards your down payment.

For new builds, they will contribute an addition 10 percent towards your down payment.

Download our full First-time Homebuyer Infographic

Qualifying For This Program

How do I Pay Back the Loan

This is an equity-type payout where costs are recuperated by the government upon the sale of the home, or after 25 years. If the value of the home has increased, the government would get a portion of the increase. Likewise, if the value has decreased, they would shoulder a percentage of the loss.

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