To all first-time buyers: Don’t forget about the FTHBI!


The first-time home buyer incentive, or FTHBI, is a program designed by the Canada Mortgage and Housing Corporation, commonly known as the CMHC, to make homeownership more accessible and affordable for first-time buyers.

With rising property prices and interest rates increasing several times already this year, this home buyer incentive could bring a smile back to the faces of many Montrealers. This program helps with down payment, thereby reducing monthly mortgage payments, without increasing financial burden.

The First Time Homebuyer Incentive is a shared-equity mortgage, with the Government of Canada, which allows you to obtain an additional 5% or 10% of the down payment of your property. This loan bears no interest, has no regular principal payments, but must be repaid* to the government at 5% or 10% of the market value of the property at the time of repayment, up to a maximum repayment amount that is equivalent to:

(i) in the case of appreciation, the amount of the Incentive plus a maximum gain to the Government of 8% per annum (not compounded) on the amount of the Incentive from the date of the advance to the time of repayment; or

(ii) in the case of depreciation, the amount of the Incentive less a maximum annual loss to the Government of 8% (not compounded) on the amount of the Incentive from the date of the advance to the time of repayment.

Who is eligible for the FTHBI?

A person:

– who has never owned a home
– who has recently experienced the dissolution of their marriage or common-law relationship
– who has not lived in a home owned by themselves or their current spouse or common-law partner in the last four years
– who has enough funds to make the minimum down payment
– who is pre-approved for a mortgage that is more than 80% of the property’s value, and thus covered by mortgage insurance.

*Incentive repayment period:
– Upon sale of the property
– At the end of the 25-year amortization period
– At any time by voluntarily repaying the full amount of the incentive

Contact us or your mortgage broker for more information.

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