What You Should Know About the Government’s New FTHB Incentive

Dan Caird • September 9, 2019

Launched on September 2nd 2019, the first time home buyer’s incentive is designed to help qualified first time home buyers reduce their monthly expenses. The goal is to make housing more affordable. The government of Canada has set aside $241M for the program and has estimated it will help 100,000 Canadians over the next 3 years.

Program highlights.

Your mortgage must be default insured, CMHC‌ will provide 5% of the downpayment for an existing home, or 10% downpayment for a new build construction.

Your income must be less than $120,000 per year and you must meet the criteria of being a first time home buyer. The insured mortgage plus incentive cannot be more than four times your household income.

There are no repayments required while you have your mortgage, however, you can pay it back anytime or upon the sale of your property. There will be some risk-sharing with the government.

Consumer Sentiment

According to a recent survey completed titled “Home Buying is Hard Work” by Mortgage Professionals Canada, Canadians are in “moderate agreement” that the new First-Time Home Buyer Incentive will “make it easier for Canadians to afford a home.”

However, among existing homeowners, most say they would not have used the program when they bought their first home, while most respondents also said they would not be willing to give up equity in their home.

Mortgage Professionals Canada Chief Economist Will Dunning expects the program will result in less than 5,000 incremental first-time purchases per year.

The More You Know

If you’re looking to buy your first home, and are considering the first time home buyer’s incentive program, the most important thing you can do is collect all the information and consider all your options.

Unfortunately, understanding mortgages can be difficult. There is a lot of information to consider when simply qualifying for a mortgage, without adding the stress of government programs, and what these programs mean for you, long term.

The good news is that you don’t have to navigate everything alone.

As an independent mortgage professional, my job is to help you qualify for the best mortgage available, using the best programs and incentives available. I’d love to walk you through all your options and explain in detail the ramifications of using a program like the first time home buyers incentive. It might be a fit for you, however, it might not be. Let’s talk!

Please contact me anytime, I’d love to discuss buying your first home!

Share

DAN CAIRD
Mortgage Agent | DLC

RECENT POSTS

How to Maximize Your Mortgage Renewal Opportunity

By Dan Caird • August 19, 2026
Your Lender Is Not Obligated to Renew Your Mortgage Many homeowners assume that if they’ve made every mortgage payment on time, their lender is automatically required to renew their mortgage at the end of the term. That’s a common belief—but it isn’t true. When you sign a mortgage, you’re agreeing to a contract for a specific term . Once that term ends, the lender has the legal right to either renew the mortgage or call the loan . There is no obligation to offer a renewal. In practice, most lenders do renew mortgages—but certain situations can prevent that from happening. Reasons a Lender May Decline to Renew A lender may choose not to renew if: Mortgage payments were missed during the term A bankruptcy or consumer proposal has occurred There is a separation or divorce Employment or income has changed A borrower on the mortgage has passed away The lender no longer prefers the property’s location or market The lender is no longer licensed to lend in Canada Even one of these factors can change how a lender views the risk. Why This Matters Because renewal is not guaranteed, waiting until the last minute can put you in a difficult position. Understanding this reality early gives you time and control. How to Protect Yourself at Renewal The best approach is to be proactive. Ideally, you should begin reviewing your options 120 days before your mortgage term ends . This gives you enough time to explore alternatives and make informed decisions—rather than reacting under pressure. Even if your current lender offers a renewal, that’s just one option , not automatically the best one. The lender that was right for you years ago may no longer offer the most competitive rate, terms, or flexibility today. The goal at renewal isn’t convenience—it’s reducing your total cost of borrowing and choosing terms that align with your current situation. Why Work With an Independent Mortgage Professional Working with an independent mortgage professional ensures someone is advocating for you , not the lender. Instead of being limited to one set of products, you can compare options across multiple lenders and choose the solution that best protects your interests. Final Thoughts Whether your lender is offering a renewal or not, the smartest move is to review all your options before signing anything. If your mortgage is coming up for renewal—or if you want to plan ahead—feel free to connect anytime. I’d be happy to help you protect your options and make a confident decision.

How Property Type and Condition Influence Mortgage Financing

By Dan Caird • August 12, 2026
Why the Property Matters When You’re Qualifying for a Mortgage When qualifying for a mortgage, lenders typically look at four core areas: Income Credit Down payment or equity The property itself Most buyers focus heavily on income, credit, and savings—and for good reason. But even if those boxes are checked, the property can still determine whether a mortgage is approved. Why Lenders Care About the Property From a lender’s perspective, the property is the collateral for the mortgage. In the unlikely event of default, they need to know the home can be sold quickly and at fair market value to recover their funds. Because of this, lenders are careful about the condition, value, and marketability of any property they finance. Homes that are in poor repair, unconventional, or overpriced can raise red flags—even when the borrower is well qualified. Appraisals Are Always Part of the Process Every mortgage requires an appraisal to confirm value. Insured mortgages (through CMHC, Sagen, or Canada Guaranty) often use an automated valuation model completed online. Conventional mortgages typically require a full, on-site appraisal by a certified appraiser. This appraisal is not optional and happens after an offer is accepted—not at the pre-approval stage. Why Pre-Approvals Aren’t a Guarantee A pre-approval is a great first step, but it only assesses you, not the property. Once you’ve made an offer, the lender must approve the specific home you’re buying. Understanding this upfront helps avoid surprises and confusion later in the process. The Risk of Buying Without a Financing Condition In competitive markets, buyers sometimes remove financing conditions to strengthen their offer. However, this comes with risk. If the appraisal comes back low—or the lender is concerned about the property’s condition—you could be denied financing after the offer is firm. In that scenario, your deposit may be at risk. Buying a Home That Needs Work If you’re considering a property that isn’t in perfect condition, there are solutions. A purchase plus improvements program allows you to buy a home and include renovation costs in your mortgage. The process is structured and requires planning, but it can be an excellent way to turn a fixer-upper into a great long-term investment. Final Thoughts Mortgage approval isn’t based solely on your finances—the property matters just as much. Knowing this ahead of time helps you make smarter offers, reduce risk, and plan more effectively. If you’re buying a property that needs work or want clarity on how a lender may view a specific home, feel free to reach out. I’d be happy to walk you through your options and help you plan with confidence.