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  • Writer's pictureRIHANA PEIMAN

First Time Home Buyer Incentive (FTHBI): Myths & Facts

Below are details of the more common myths to give you a better idea of the real truth about FTHBI:

๐— ๐˜†๐˜๐—ต: The incentive is free money to a qualified first-time buyer. ๐—™๐—ฎ๐—ฐ๐˜: The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first.

๐— ๐˜†๐˜๐—ต: The shared equity mortgage means that the Incentive is interest bearing. ๐—™๐—ฎ๐—ฐ๐˜: The shared equity mortgage means that the government shares in the upside and downside of the property value.

๐— ๐˜†๐˜๐—ต: There is a repayment penalty. ๐—™๐—ฎ๐—ฐ๐˜: The homebuyer can also repay the Incentive in full any time without a pre-payment penalty.

๐— ๐˜†๐˜๐—ต: Incentive is to help first-time homebuyers purchase their first home with the intent to invest. ๐—™๐—ฎ๐—ฐ๐˜: It is only for the primary residence, not for investment properties.

๐— ๐˜†๐˜๐—ต: Only Canadian citizens and permanent residents are eligible borrowers. ๐—™๐—ฎ๐—ฐ๐˜: Non-permanent residents who are legally authorized to work in Canada are also eligible.

๐— ๐˜†๐˜๐—ต: FTHBI increases Monthly Mortgage Payments. ๐—™๐—ฎ๐—ฐ๐˜: FTHBI reduces Monthly Mortgage Payments, without increasing the amount that borrowers must save for a down payment.

This short video touches on some key features of FTHBI:


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