The CMHC First Time Homebuyer Incentive

The First-Time Home Buyer Incentive (FTHBI) is a program by Canada Mortgage and Housing Corporation (CMHC) that is aimed at helping first-time homebuyers by reducing their monthly mortgage payments.
Here are the key details of the CMHC First-Time Home Buyer Incentive:

1. Eligibility:
   
   • Applicants must be first-time homebuyers, which means they have not owned a home in the last four years.
   • Borrowers must have a down payment of at least 5% for a resale home or 5% or 10% for a newly constructed home.
   • The total household income must be below a certain threshold ($120,000 for most markets)
2. Incentive Structure:
   
   • The CMHC provides a shared equity mortgage with the government. This means that the government contributes a certain percentage towards the purchase price of the home.
   • For resale homes, the government can contribute up to 5% of the purchase price.
   • For newly constructed homes, the government can contribute up to 10% of the purchase price.
3. Repayment:
   
   • The incentive is not an interest-bearing loan, and no ongoing payments are required.
   • The incentive must be repaid after 25 years or when the property is sold, whichever comes first. Repayment is based on the property's fair market value at the time of repayment.
4. Market Value Fluctuation:
   
   • If the home value increases, the repayment amount will be a percentage of the home's appreciated value.
   • If the home value decreases, the repayment amount will be a percentage of the home's current market value.

It's important to note that program details and eligibility criteria may change, and new programs may be introduced after the last program update in January 2022. I recommend reaching out to get the most up-to-date information on the First-Time Home Buyer Incentive or any other government programs that may be available to you.