On June 17, 2019, Canadian Mortgage and Housing Corporation (CMHC) released details on the first time home buyer incentive (FHBI). The Launch of the new program is set for September 2, 2019.

CMHC Program Quick Notes:

  • Eligible for first time home buyers only;  5% of total purchase price of a resale house or 10% of a newly constructed house
  • Annual household income must be below $120K
  • FHBI is non-interest bearing and does not require ongoing payments
  • Must be repaid at time of sale or 25 years from purchase date
  • The government has equity in your house, therefore they share the risk of decline or the value in growth

Example: If you borrow 10% down payment from FBHI on a 400K house purchase (40K loan with FHBI). If sold within 10 years for $300K only 30K will have to be repaid. If the house is sold for $500K, 50K would have to be repaid.

Please see attached link for source information in the new program and consult with us to see if this program is right for you.


Trevor Chopek is a Chartered Professional Accountant and owner principal of Chopek & Associates* in Edmonton, Alberta. Trevor enjoys sharing value-filled op-eds on Canada’s top accounting tips and best practices! To learn how Chopek & Associates* can help your small to medium-sized business, book with his office, today!