The First-Time Home Buyer Incentive (FTHBI) ended in March 2024. Here's what you need to know and what programs have replaced it.
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Open KOHO Free — Code 45ET55JSYAThe First-Time Home Buyer Incentive (FTHBI) was Canada's shared equity mortgage program, launched in 2019 by the federal government through CMHC. The program offered eligible first-time buyers a 5% or 10% interest-free shared equity loan for the purchase of a new-construction home (or 5% for existing homes). The government shared in any appreciation or depreciation of the home's value proportionally.
The FTHBI was closed to new applicants on March 21, 2024. The program was criticized for being too restrictive — income limits, purchase price caps, and the shared equity structure made it unattractive in most high-cost markets where buyers needed the most help. Applications submitted before the deadline are still being processed, but no new applications are accepted.
The federal government shifted focus from shared equity lending to tax-advantaged savings and expanded RRSP access. The key replacements and enhancements introduced since 2023:
| Program | What It Does | Status |
|---|---|---|
| First Home Savings Account (FHSA) | $8,000/yr, $40,000 lifetime — tax-deductible contributions, tax-free withdrawals | Active since April 2023 |
| Home Buyer's Plan expansion | RRSP withdrawal limit increased from $35,000 to $60,000 | Active since April 2024 |
| 30-year amortization for FTHB | Insured mortgage amortization extended to 30 years for FTHB buying new builds | Active since August 2024 |
| First-Time Home Buyer Tax Credit | $1,500 federal tax credit | Active — doubled in 2022 |
While the federal FTHBI is closed, several provinces run their own programs to help first-time buyers with down payments and affordability:
BC has offered various assistance programs over the years. Check BC Housing's current programs at the time of your purchase, as offerings change with provincial budgets. BC also provides significant Property Transfer Tax exemptions for first-time buyers on homes under $835,000.
Ontario does not currently offer a provincial shared equity mortgage, but does provide Land Transfer Tax rebates of up to $4,000 for first-time buyers. The City of Toronto provides an additional municipal LTT rebate of up to $4,475.
Alberta has no provincial land transfer tax, which is itself a significant advantage. Alberta's Rural Housing Program offers assistance in specific rural communities. Municipalities like Calgary and Edmonton have periodically offered affordable housing initiatives — check current programs with your city.
Nova Scotia's Down Payment Assistance Program provides eligible first-time buyers with an interest-free, forgivable loan of up to 5% of the purchase price (up to a maximum). Eligibility is income-tested and based on purchase price limits. This is one of the more active provincial down payment assistance programs in Canada.
With the FTHBI gone, the best strategy for 2025 first-time buyers combines available federal programs:
The end of the FTHBI is not a major loss for most buyers — the program's income and price caps made it inaccessible in the markets where buyers most needed help. The FHSA and expanded HBP together provide more flexible, accessible, and more generous total benefits for the vast majority of first-time buyers. Focus your energy on maximizing these programs rather than looking for shared equity alternatives.
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