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

Jen & Cory • September 12, 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. We’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 us anytime, we’d love to discuss buying your first home!

Jen & Cory
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What Online Mortgage Calculators Can—and Can’t—Tell You

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What Online Mortgage Calculators Can—and Can’t—Tell You Online mortgage calculators are everywhere—and on the surface, they seem like a no-brainer. You plug in some numbers, and out pops what you can “afford.” Simple, right? Not quite. While the math itself is correct, the story behind those numbers is often misleading. Mortgage qualification isn’t just about numbers—it’s about context, risk, and lender policy. And that’s where calculators fall short. The Numbers Are Accurate—but the Picture Isn’t An online calculator can show you what a payment might look like at a given interest rate, or how making extra payments could reduce your amortization. That’s useful information! But when it comes to mortgage qualification , calculators don’t account for the many variables that lenders consider, such as: Your credit history and score Employment type (salary, self-employed, contract) Outstanding debts and monthly obligations Assets, savings, and down payment source The property type and location you’re buying Lenders evaluate all these factors through their internal risk models. That means two people entering the exact same numbers into a calculator could receive very different results when they actually apply for a mortgage. Why Online Calculators Can Mislead You When you see a “How much can I afford?” or “Mortgage Qualification” calculator online, it’s easy to treat the result as fact. But these tools don’t know your financial story—they only crunch the data you enter. A calculator can’t predict how a lender views your risk, how new mortgage rules apply to your file, or how things like spousal support, car loans, or variable income will impact approval. In short: calculators estimate payments, not qualification . Use Calculators the Right Way Don’t get us wrong—online calculators still have value. Use them to explore different “what-if” scenarios: How do payments change with different down payment amounts? How would a rate increase affect affordability? What if you added $100 a month to your payments? These tools are great for helping you understand your comfort zone. Just remember: they’re a starting point, not a green light. The Real First Step: Get a Pre-Approval If you’re serious about buying a home, skip the guesswork and get a mortgage pre-approval . It’s quick, free, and gives you real-world clarity on what you can afford. A pre-approval looks at your full financial picture—income, credit, debts, assets—and provides a framework for your purchase price, payment range, and rate options. It’s the only way to get a reliable answer to the question, “What can I really afford?” Final Thoughts Online calculators are convenient, but they can’t replace expert advice. Think of them as a starting point, not a solution. A professional mortgage broker can interpret the numbers, navigate lender policies, and tailor your financing strategy to your actual situation. If you’d like help understanding your true buying power—or want to get pre-approved with confidence— reach out anytime . I’d be happy to walk you through your options and help you make sense of the numbers.