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  • Writer's pictureSim Dhaliwal

First Time Home Buyer Incentive

Updated: Oct 10, 2019

The recently launched First Time Home Buyer Incentive provides qualified first time buyers a small, interest and payment free loan (in addition to your down payment) in the form of a Shared Equity Mortgage.

See details below:

•The loan must be repaid after 25 years or if you sell your house (whatever comes first)

•The loan can be repaid at anytime before the 25 year time frame as long as it’s a full payment, no partial payments

•Repayment of incentive is based on the property's fair market value (increase or decrease) at time of sale. If property increases in value, you pay back more than received, if property decreases then you pay less than what you initially received

•Resale properties allow for a 5% incentive whereas brand new properties allow for up to a 10% incentive, based on purchase price

•Only applies to insured mortgages, which means your down payment + the incentive must be less than 20% of the home value at time of purchase

The purpose of this loan is to help reduce monthly mortgage payments without increasing the down payment. By adding the incentive amount in addition to your down payment, your total mortgage amount decreases, which in turn lowers your monthly payment. It should be noted that it can be repaid at anytime as long as it’s a full payment (no partial payments).

What does it take to Qualify?

•Must be a First Time Home Buyer (at least one)

•Must have the minimum down payment required

•Must live in the property

•Maximum qualifying household income is $120,000 per year

•Mortgage + Incentive amount can't be greater than 4X the participants household incomes ($480,000 maximum amount for mortgage + incentive combined)

The Incentive sounds great, but with it's limitations it's definitely not for everyone. However, if you can benefit from this program it's something you should consider. To apply or for general info visit

If you're not sure whether it's beneficial for you or you just have questions, feel free to contact me.


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