Budget 2019 Introduced First-Time Home Buyer Incentive.

The Incentive would allow eligible first-time home buyers who have the minimum down payment for an insured mortgage to apply to finance a portion of their home purchase through a shared equity mortgage with Canada Mortgage and Housing Corporation (CMHC).

There would be no monthly payments with the Incentive, meaning families would have a lower monthly mortgage payment. For example, if a borrower purchases a new $400,000 home with a 5 per cent down payment and a 10 per cent CMHC shared equity mortgage ($40,000), the borrower's total mortgage size would be reduced from $380,000 to $340,000, reducing the borrower's monthly mortgage costs by as much as $228 per month.

CMHC would offer qualified first-time home buyers a 10 per cent shared equity mortgage for a newly constructed home or a 5 per cent shared equity mortgage for an existing home. The larger share for newly constructed homes is aimed at encouraging new builds to address chronic inventory shortages.

Terms and Conditions:
The Incentive would be available to first-time home buyers with household incomes under $120,000 per year. As well, participants' insured mortgage and the Incentive amount cannot be greater than four times the participants' annual household incomes.

The First-Time Home Buyer Incentive would be available over three years with the aim of assisting 100,000 Canadian families purchase their first home.