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First Time Home Buyer Incentive
 August 30 2019     Posted by Tracy Bennett

The New Incentive allows first time buyers to reduce their monthly mortgage payment without increasing their own down payment.


The Program launches September 2, 2019 for applications and first closings will take effect on November 1, 2019.



  • You have never purchased a home before.
  • You have recently experience a breakdown of a marriage, or common-law partnership.
  • In the last 4 years, you have not occupied a home, or your current spouse or common-law partner owned.
  • Household income cannot exceed $120,000.
  • Minimum of 5% down payment from the home buyer, which can be a gift or personal savings.
  • Total borrowing is limited to 4 times the qualifying income, not including high ratio premiums.
  • Must be purchased for owner-occupancy, as rental properties are not eligible.

If you meet the above criteria, you can apply for a 5% or 10% shared equity mortgage with the Government of Canada.   A shared equity mortgage is where the government shares in the upside and downside of the property value.  The incentive is not interest bearing and does not require ongoing repayment, thus reducing the monthly costs for the homebuyer.

The program allows 5% for a first-time buyer of a resale and either 5% or 10% for a first time buyer of a newly constructed home.  You can repay the incentive at any time in full without a penalty.  You have to repay the incentive after 25 years or if the property is sold, whichever comes first.  The repayment of the incentive is based on the property’s fair market value.  Porting will not be allowed as the sale will initiate a requirement to repay the incentive

  • You buy at $300,000 with a 5% incentive and sell at $400,000 and repay $20,000 for the use of the $15,000 incentive from purchase.
  • If the property value goes down, you are responsible for repaying the shared equity based on the sale price.

The incentive may have additional costs: legal fees as you are registering 2 mortgages.  Once sold, the government may require an appraisal to determine fair market value.  If you switch lenders there may be costs to postpone the incentive to allow a transfer of your first mortgage.



  Regular Mortgage First time Home Buyer Grant
Purchase Price $400,000 $400,000
Down Payment $20,000 $20,000 + $20,000 Grant
Mortgage Amount $380,000 $360,000
Mortgage Rate 4% 3.1%
Insurance Premium $15,200 $11,160
Monthly Mortgage Payment $1,807.97 $1,697.99
Savings Per Month $0 $177.31
Savings over 5 Year Term $0 $10,638.80


The applications are now available, but we will apply on your behalf as part of the mortgage application process.  Call or email us if you have any questions, or would like us to assist with the application info@bennettcapital.ca


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