What Is the First-Time Home Buyer Incentive in Canada?

Can I still apply for the First-Time Home Buyer Incentive in Canada?

No. CMHC is no longer accepting applications for the First-Time Home Buyer Incentive. The program’s closure applies to new applicants; CMHC says borrowers whose applications had already been approved were not affected by the discontinuation.

The incentive offered an eligible buyer a shared-equity mortgage equal to 5% or 10% of the home’s purchase price, depending on the home and eligibility. It was not a general grant that disappeared from the borrower’s obligations once the program closed. An existing participant still has to repay according to the agreement.

That distinction matters when comparing the incentive with other first-time-buyer programs. A program with a similar name or purpose is not necessarily the same program, and its terms cannot be used to work out an existing FTHBI balance. For a wider comparison of program types, see What Is a New Home Owner Grant, and Who Can Get One?

When did the First-Time Home Buyer Incentive stop accepting applications?

CMHC set March 21, 2024, at midnight Eastern time as the deadline for new submissions, and stated that no new approvals would be granted after March 31, 2024. These dates mark separate steps: the first closed the submission window, while the second ended the approval period.

CMHC’s announcement is the relevant source for the program’s status and dates. The deadline does not change the repayment terms for people already approved. Those borrowers continue under the shared-equity arrangement they entered into.

The old incentive therefore has two different timelines: a closed application window for new buyers and a continuing repayment schedule for existing participants. Checking which side of that distinction applies is the first step before estimating a repayment amount or planning a mortgage change.

If I already received the incentive, when do I have to repay it?

Repayment is due when the property is sold or at the end of 25 years, whichever comes first, according to CMHC’s program guidance and operational policy manual. Certain other changes can also trigger repayment, so a sale-and-deadline timeline alone does not cover every case.

A ported mortgage is treated as a sale under the incentive and triggers repayment. A partial release of the property’s security and certain co-borrower buyouts can also trigger repayment under CMHC’s operational policy. These triggers make it important to distinguish porting a mortgage from refinancing or moving the first-ranking mortgage to a different lender.

For a typical sale to an unrelated buyer, CMHC says repayment value is generally supported by the purchase price in the purchase-and-sale agreement. A sale between parties who are not at arm’s length needs an independent third-party appraisal instead. Early voluntary repayment and repayment at the 25-year point also require an appraisal, so the valuation process depends on the event that brings repayment due.

For those appraisal cases, the report must be prepared for determining fair market value for FTHBI repayment and addressed to both the borrower and Program Administrator. CMHC’s simplified appraisal checklist calls for both the cost and comparison approaches, along with information on the property’s condition, photos, and repairs or improvements performed in the last five years or since incentive approval. The operational manual specifies that the appraisal for voluntary early repayment or the 25-year deadline must be dated within 90 days of repayment.

The amount is not simply the original dollar advance. CMHC calculates repayment using the original incentive percentage—typically 5% or 10%—of the home’s market value at repayment. The government’s share of appreciation or depreciation is capped at a maximum gain or loss of 8% per year, not compounded, on the incentive amount from the date the incentive was advanced to repayment. That cap limits the change in the government’s share; it does not turn the repayment into a fixed original amount.

Refinancing the first-ranking mortgage does not itself trigger repayment, and switching that mortgage to another financial institution does not trigger repayment either. CMHC’s operational policy says the incentive’s second-ranking security must remain in place and the combined charges cannot exceed 80% loan-to-value at refinance. Legal fees may apply when changing lenders. Since the rules hinge on how the transaction is structured, borrowers can confirm the requirements with their lender and the Program Administrator before proceeding.

CMHC also says its administrator may work with borrowers facing financial hardship, potentially by extending or modifying repayment requirements. That is a case-specific possibility described in the Questions and Answers, not an automatic change to the repayment terms. The same guidance allows full early repayment without a prepayment penalty, while ruling out partial repayment.