More flexible First-Time Home Buyer Incentive

In 2019, we launched the First Time Home Buyer Incentive (FTHBI), an innovative new tool that allows middle-class families looking to buy their first home, reduce the size of the mortgage they require, and in turn reduce their monthly housing costs. The FTHBI acts as a second mortgage but with no requirement to repay until you sell your home, with the government receiving a proportional share of any increase (or decrease) in value, if any.

Recognizing that some prospective participants would not want to forgo this increase in equity value, a re-elected Liberal government will allow you to choose between the current shared-equity approach or a loan that is repayable only at the time of sale. Under the latter option, borrowers would not have to pay a monthly installment, but would instead have these payments deferred (at a market interest rate) until the time of sale. This would let you keep more of any increase in the value of your home, while still reducing your monthly mortgage costs.