First-Time Home Buyer Incentive: Eligibility and How It Works

First‑Time Home Buyer Incentive — Editor’s Note

Editor’s note: The federal government’s First‑Time Home Buyer Incentive was discontinued in March 2024. The deadline for new and updated submissions to the program was March 21, 2024 (midnight ET).

If you were saving to buy your first home, you may have been eligible for the federal First‑Time Home Buyer Incentive. This shared‑equity initiative was designed to improve housing affordability for qualified first‑time buyers by sharing in the cost of a home. With the program now discontinued, it’s important to know the timeline and to review alternative options and steps that can help you prepare to buy a home.

The Incentive aimed to make monthly mortgage payments more manageable by reducing the portion of the purchase price that must be financed. While program specifics and eligibility criteria were set by the federal government, the key point for prospective buyers was that the Incentive represented one of several measures intended to support access to homeownership. Since the program ended in March 2024, prospective buyers should pay attention to the official deadline that applied to new and updated applications and focus on other practical measures to improve affordability and readiness.

For many first‑time buyers, preparing to enter the housing market involves several parallel steps:

Build your savings: A larger down payment can lower monthly mortgage costs and broaden the range of lenders and mortgage products available to you. Aim to set aside funds not only for a down payment but also for closing costs and a contingency reserve.
Improve your credit profile: Lenders rely heavily on credit history and credit scores. Paying bills on time, keeping credit card balances low, and avoiding new debt in the months before applying for a mortgage can help secure better terms.
Understand total costs: Monthly mortgage payments are only one part of homeownership costs. Account for property taxes, utilities, insurance, maintenance, and any condo fees. A realistic monthly budget helps ensure affordability over time.
Get pre‑approved: A mortgage pre‑approval clarifies how much a lender is willing to lend and signals to sellers that you are a serious buyer. Compare offers from multiple lenders and mortgage brokers to find competitive rates and terms.
Research programs and incentives: While the federal First‑Time Home Buyer Incentive has ended, other provincial, municipal, or lender programs may still offer assistance. Investigate grants, rebates, tax credits, or tailored lending products that could apply to your situation.
Work with professionals: Real estate agents, mortgage brokers, financial advisors, and lawyers each play a role in a successful purchase. Seek guidance from trusted professionals to navigate offers, inspections, financing, and closing procedures.
Plan for the long term: Consider how a mortgage fits into your broader financial goals. Think about job stability, potential life changes, and how long you plan to live in the property when choosing mortgage length and structure.

Even though the federal Incentive program has been discontinued, the practical steps above remain useful for first‑time buyers. Staying informed about programs and market conditions, and preparing financially, will help you act quickly and confidently when the right opportunity appears.

Below are additional resources on real estate, mortgages, and guidance for new buyers. These cover general topics such as choosing a mortgage, calculating renewals, and understanding market conditions. Use them to deepen your understanding and to compare financing options and strategies that suit your needs.

First‑Time Home Buyer Incentive — Editor’s Note

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