People still search for the First-Time Home Buyer Incentive, so here's the short version: it's gone. The good news is that the programs that replaced it are better for most buyers, because none of them takes a share of your home's future value.
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548 490 4577What was the First-Time Home Buyer Incentive?
It was a federal shared-equity mortgage run by CMHC from 2019 to 2024. The government put in 5% of the price on a resale home or 10% on a new build, which lowered your mortgage and your monthly payment. You didn't pay interest on it, but you didn't borrow a fixed dollar amount either. CMHC owned a share of the home's value, so if prices went up, you paid back more.
Strict income and price limits meant few people could use it. That's a big part of why it was shut down.
I already have one. When do I pay it back?
When you sell, or after 25 years, whichever comes first. You can also pay it back early. The amount depends on what the home is worth at the time, not what you borrowed:
| Example | CMHC's share | You repay |
|---|---|---|
| Bought at $400,000 with a 5% incentive, sold for $500,000 | 5% | $25,000 (not the original $20,000) |
| Bought at $400,000 with a 5% incentive, sold for $380,000 | 5% | $19,000 |
To repay without selling, you'll need an appraisal, and your lawyer has to discharge the registered mortgage, so budget for both. If you're planning a big renovation, ask CMHC first: they share in increases in value, including ones your renovation creates. If you're thinking of selling a home that has one, let me know early so your lawyer can order the payout figure before closing.
What can first-time buyers in Ontario use instead?
| Program | What you get | Paid back? |
|---|---|---|
| First Home Savings Account (FHSA) | Save up to $8,000 a year, $40,000 in total, tax-deductible going in and tax-free coming out | No |
| RRSP Home Buyers' Plan | Withdraw up to $60,000 from your RRSP tax-free ($120,000 for a couple) | Yes, over 15 years |
| Ontario land transfer tax refund | Up to $4,000 off the provincial land transfer tax | No |
| First-time home buyers' tax credit | $1,500 off your income tax the year you buy | No |
| 30-year insured mortgage | Lower monthly payment with less than 20% down | n/a |
| Gifted down payment | Family can give you some or all of it, with a gift letter | No |
You can use the FHSA and the Home Buyers' Plan on the same purchase. Together with the land transfer tax refund, that covers far more than the old incentive ever did, and none of it gives the government a cut when you sell.
Is there anything new for first-time buyers buying a new build?
Yes. If you're buying a newly built home from a builder, there are now GST/HST rebates for first-time buyers on homes up to $1 million. They can cover the federal and Ontario portions of the HST, which is real money on a new build. Ontario has also added a temporary enhanced rebate for agreements signed between April 1, 2026 and March 31, 2027. The rules depend on the price, the date you sign and whether the home is your principal residence. The builder usually credits the rebate on the agreement, so have your lawyer check how it's handled before you sign.
These rebates don't apply to resale homes.
What about local programs in London and St. Thomas?
London-Middlesex and St. Thomas-Elgin have both run forgivable down payment loans for moderate-income renters, usually 5% of the price up to $25,000, forgiven after 20 years in the home. They run on yearly funding, so they open and close. Check the current status before you count on one.
How do I know which programs I qualify for?
Start with your lender. A mortgage pre-approval will tell you your budget, and a good mortgage specialist will tell you which programs fit your timing. Then line up the money: FHSA and RRSP withdrawals can take a few business days, and your deposit is usually due within 24 hours of an accepted offer.
Frequently asked questions
Is the First-Time Home Buyer Incentive coming back?
There's no announcement that it's coming back. The federal government moved its first-time buyer help into the FHSA, the larger Home Buyers' Plan, 30-year amortizations and GST relief on new homes instead.
Do I have to pay back the First-Time Home Buyer Incentive if I refinance?
Not necessarily, but your lender and CMHC need to be involved, because the incentive is registered as a second mortgage on your title. Call CMHC before you start a refinance, switch lenders or take out a home equity line.
What's the biggest program for first-time buyers in Ontario right now?
For most people it's the FHSA paired with the RRSP Home Buyers' Plan. A couple who both qualify can put up to $80,000 from FHSAs and $120,000 from RRSPs toward the same home.
