The First-Time Home Buyer Program helps eligible buyers reduce their monthly mortgage payments without increasing their financial burdens.

The First-Time Home Buyer Program is a shared mortgage with the Government of Canada, which offers:

5% or 10% when the buyer purchases a newly built home for the first time

5% when the buyer purchases a resale (existing) home for the first time

5% for the first-time buyer purchasing a new, manufactured/movable, or resale home

Shared ownership in the program means the government shares in both the rise and fall of the property value, with a maximum profit or loss equal to 8% annually (non-compounded) on the amount granted by the government from the date of the advance to the time of repayment.

By obtaining the loan, the borrower may not have to save more money to secure the down payment and be able to afford the payments associated with the mortgage. A larger down payment leads to a smaller mortgage and ultimately lower monthly costs.

The home buyer must repay the loan based on the market value of the home at the time of repayment, which equals the percentage (for example, 5% or 10%) of the original home value used to determine the loan as follows:

(1) In case the home value increases, the loan amount plus a profit of up to 8% annually (non-compounded) on the amount granted from the date of the advance to the time of repayment is repaid

(2) In case the home value decreases, the loan amount minus a maximum loss limit of 8% annually (non-compounded) on the amount granted by the government from the date of the advance to the time of repayment is repaid.

The home buyer must repay the loan after 25 years, or upon selling the property, whichever comes first. The home buyer can also repay the loan in full at any time without paying a prepayment penalty.

Edited by: Dima Abu Khair