Real Estate Agent | Collingwood | Wasaga Beach | Blue Mountain | Thornbury | Owen Sound | Barrie | Muskoka | Huntsville | Bracebridge | Gravenhurst Find a Sanctuary of Your Very Own

Is the First-time Homebuyer Incentive right for you?

Dated: August 15 2021

Views: 31

collingwood real estate

To make it easier for first-time homebuyers to get into the market, the federal government unveiled an incentive where the government contributes to the purchase of the home through a shared mortgage. This allows a potential homeowner to access 5% or 10% depending on whether your home is being purchased as resale or a new build. Not only will this allow you to boost your down payment, it means lower monthly carrying costs. 

What is a shared mortgage? By participating in the incentive, you are sharing your mortgage with the government. That means the government also shares the risk. For example, if you access 5% of the purchase price of a home through the incentive and the home’s value is $500,000, the government’s 5% share is worth $25,000. If the home is sold for $600,000, you must pay the government back $30,000. However, if the value of the home goes down, you pay back less. If the home is sold for $400,000, your repayment is $20,000.

To take advantage of the program, both you and the property must be eligible. It cannot be an investment property  According to the Government of Canada’s website:

  • Your total annual qualifying income must not exceed $120,000 ($150,000 if the home you are purchasing is in Toronto, Vancouver, or Victoria).
  • Your total borrowing must be no more than 4 times your qualifying income (4.5 times if the home you are purchasing is in Toronto, Vancouver or Victoria).
  • You or your partner must be a first-time homebuyer.
  • You must be a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada.
  • You must meet the minimum down payment requirements with traditional funds (savings, withdrawal/collapse of a Registered Retirement Savings Plan (RRSP), or a non-repayable financial gift from a relative/immediate family member).
  • The property must be in Canada and used for you to live in.

To learn more about participation requirements, how to apply, repayment structure and other important details, visit

Click here for the eligibility and savings calculator.

Real Estate Agent | Wasaga Beach | Collingwood | Blue Mountain | Thornbury | Meaford | Owen Sound | Tiny | Orillia | Midland | Penetang | Muskoka | Royal LePage | Locations North

Instagram @forsalebymike

Blog author image

Michael Rigillo

Michael Rigillo brings 20+ years of sales and marketing experience from various careers. He is a local entrepreneur and owns investment properties in Muskoka, Collingwood and Blue Mountains. Origin....

Latest Blog Posts

Royal LePage forecasts double-digit home price growth in Canada in 2022

After two years of strong price appreciation, Canadian home prices are poised to increase significantly in 2022, albeit at a slower pace than in previous years. According to the Royal LePage Market

Read More

Buy or rent a home: Which is better financially?

For generations, Canadians have been asking themselves this important question: ‘Is it better to buy a home or rent?’ On the one hand, owning comes with more responsibility and higher

Read More

Canadians are taking their housing affordability concerns all the way to the ballot box in this federal election …And federal leaders seem to be paying attention

For the second time in less than two years – which have been largely defined by an ongoing global pandemic – Canadians will head to the polls in a federal election later this month.

Read More

Young Canadians split on preference of city versus country living

The old adage “location, location, location” perpetuates the notion that proximity to amenities is one of the most important factors when choosing a place to live. This is especially

Read More