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:
𝗠𝘆𝘁𝗵: The incentive is free money to a qualified first-time buyer. 𝗙𝗮𝗰𝘁: The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first.
𝗠𝘆𝘁𝗵: The shared equity mortgage means that the Incentive is interest bearing. 𝗙𝗮𝗰𝘁: The shared equity mortgage means that the government shares in the upside and downside of the property value.
𝗠𝘆𝘁𝗵: There is a repayment penalty. 𝗙𝗮𝗰𝘁: The homebuyer can also repay the Incentive in full any time without a pre-payment penalty.
𝗠𝘆𝘁𝗵: Incentive is to help first-time homebuyers purchase their first home with the intent to invest. 𝗙𝗮𝗰𝘁: It is only for the primary residence, not for investment properties.
𝗠𝘆𝘁𝗵: Only Canadian citizens and permanent residents are eligible borrowers. 𝗙𝗮𝗰𝘁: Non-permanent residents who are legally authorized to work in Canada are also eligible.
𝗠𝘆𝘁𝗵: FTHBI increases Monthly Mortgage Payments. 𝗙𝗮𝗰𝘁: 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: