Do you qualify for the "First Time Home Buyer Incentive"?

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In 2020, the Government of Canada created a new program to help Canadians purchase their first home called the First-Time Home Buyer Incentive.

This program lends you 5% of the value of the home you are purchasing (10% if you’re building a home) towards your down payment.

So if you put 5% down payment on your new home plus the First Time Home Buyer Incentive of 5%, your total down payment would be 10%. With a higher down payment, your mortgage payments will be lower.

When you sell your home, or after 25 years, whichever comes first, you pay back that same percentage of your home’s selling price.

Who qualifies?

You qualify as a first-time home buyer if you meet any of the following conditions:

  • You have never owned a home
  • You did not live in a home owned by your spouse or partner in the last four years
  • Your marriage or common-law relationship has ended (which allows you to qualify even if you don’t meet the previous two qualifications)

Here is the criteria to determine if you’re eligible to participate in the program:

  • Your annual household income is not higher than $120,000
  • You are borrowing no more than four times your annual income
  • Either you or your partner must be a first-time home buyer
  • You are a Canadian citizen, permanent resident, or authorized to work in Canada
  • You must have at least 5% of the home’s purchase price as a down payment, but with the incentive, your down payment cannot exceed 19% of the home’s purchase price



Is it Right for Me?

The decision to take advantage of the First-Time Home Buyer Incentive is a personal one. This program can help you buy your first home sooner and lower your mortgage payments, allowing you to put more money away into your savings or towards repaying other debt.

However, it is important to keep in mind that when you sell your home, you will be required to repay a percentage of your home’s value.

  • If your home has increased in value, you will be repaying more than you received initially through the program.
  • If you opt not to sell your home, be aware that in 25 years, you will be required to repay a percentage of your home’s current value.

A Cambrian Financial Services Officer can help you decide whether taking advantage of this program is right for you. Contact your local branch to make an appointment with an FSO.

Learn more about the First-Time Home Buyer Incentive.

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