top of page



There are a few qualifiers to apply for this incentive:

  • 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 

If you meet these criteria, you can then 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.

How does it work? 

The Incentive enables first-time homebuyers to reduce their monthly mortgage payment without increasing their down payment. The Incentive is not interest bearing and does not require ongoing repayments.   

Through the First-Time Home Buyer Incentive, the Government of Canada will offer: 

  • 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 


How do I know how much I have to pay back?   

You can repay the Incentive at any time in full without a pre-payment penalty. You have to repay the Incentive after 25 years or if the property is sold, whichever happens first. The repayment of the Incentive is based on the property’s fair market value. 

  • 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. 



If you are a first time home buyer you are eligible for rebates for both the municipal (if applicable) and provincial land transfer tax.

As of January 1st, 2017:

  • There is no land transfer tax on the first $368,000

  • Homes greater than $368,000 receive a maximum refund of $4,000

​To Qualify for the Rebate:

  • The purchaser must be at least 18 years old.

  • The purchaser must occupy the home as their principal residence within nine months of the date of transfer.

  • The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at 

  • any time.

  • If the purchaser entered into an agreement of purchase and sale before December 14, 2007, the home must be a newly 

  • constructed home and the purchaser must be eligible for the Tarion New Home Warranty.

  • If the purchaser has a spouse, the spouse cannot have owned an eligible home, or had any ownership interest in an eligible home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.

Typically, your lawyer will apply for the fee as you finalize your purchase, but if that doesn’t happen you have 18 months after the 

registration date of the sale. You can read more information on the government website, click below.



The First time home buyer (FTHB) tax credit allows first-time buyers in Canada the opportunity to recover some of the costs associated with their first home purchase. The FTHB Tax Credit offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief. 

To receive your $750 claim, you must include it with your personal tax return under line 369.



If you haven’t purchased a home within the last four years (or lived in a spouse’s home in the same timeframe), you may qualify for the government’s Home Buyer’s Plan. 

With this plan, you may borrow up to $25,000 tax-free from your RRSP to fund your down payment. 

It is important to know that the money must be in your RRSP at least 90 days before the purchase of your house.

The First Time Home Buyer’s Plan is advantageous for Canadians because generally speaking, early withdrawals from RRSPs are considered taxable income. In this case, they’re exempt but you must start repaying the amount borrowed from the RRSP two years after you buy over a 15-year period.


bottom of page