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What Is the First-Time Home Buyer Incentive | How to Apply for the FTBH Incentive



What Is the First-Time Home Buyer Incentive | How to Apply for the FTBH Incentive

What Is the First-Time Home Buyer Incentive | How to Apply for the FTBH Incentive. For those venturing into homeownership for the first time, the First-Time Home Buyer (FTBH) Incentive by the Federal Government is a crucial scheme to comprehend. This article aims to equip you with comprehensive details on what FTBH entails and the step-by-step process to apply for the incentive.

First-Time Home Buyers

The FTBH incentive scheme is a boon for Canadians, alleviating the financial burden associated with purchasing their first home. The primary objective is to facilitate first-time homebuyers in acquiring their homes without straining their finances excessively.

Under this program, the federal government extends financial assistance based on the type of property sought and the capital required for the purchase. Additionally, eligible beneficiaries benefit from reduced monthly mortgage payments. If you are a prospective first-time homebuyer, this article offers essential insights to help you make informed decisions.

What is FTBH?

Established by the Canadian government, the FTBH incentive assists individuals in financing a portion of their first residence. Through a shared equity program, buyers can borrow 5% to 10% of their home’s price, reducing their mortgage payments.

This innovative approach aims to make homeownership more affordable by lowering monthly mortgage costs through increased down payments.


In essence, the federal government lends a specific amount to buyers at 0% interest based on the property type, allowing first-time buyers to realize their homeownership dreams at more affordable prices without the pressure of a substantial down payment.

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Eligibility for First-Time Home Buyer Incentive

Certain eligibility criteria must be met to qualify for the FTBH incentive. Key requirements include being a first-time homebuyer with the financial capacity to make a 5% down payment, an annual household income of $120,000 or less, and the legal right to work in Canada. Additionally, the candidate must not borrow an amount exceeding four times their qualifying income.

It important to note that the classification as a first-time homebuyer applies to those purchasing a home for the first time or those recently divorced.

Application Process for the Incentive

Prospective homebuyers who have identified a property and secured pre-approval for a mortgage can initiate the application process for the FTBH Incentive. By completing the required forms, such as the Packaged SEM Information and SEM Attestation and Consent Form, available on the FTBH website, applicants can submit their applications through their mortgage lender.

For successful applications, contacting FNF Canada, the closing service provider, is necessary to provide essential details and the name of the notary or lawyer.


Repayment Terms for First-Time Home Buyer Incentive

As a shared equity program, the FTBH Incentive involves the federal government holding 5% or 10% equity in the home. Repayment amounts are contingent on the home’s current value, determined by a qualified appraiser. In case of an increase in house value, the repayment amount is calculated based on the original loan percentage or the current market value, capped at an 8% yearly growth rate.

Making prompt repayments offers flexibility, preventing borrowers from repaying more than borrowed. This allows borrowers to save money without the obligation to sell their homes.

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FTBH Incentive provides a valuable opportunity for first-time homebuyers to enter the housing market with reduced financial strain. Understanding the eligibility criteria and application process is crucial for maximizing the benefits of this government initiative.

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