First-Time Home Buyer Incentive 2.0 Now Available

The First-Time Home Buyer Incentive 2.0 is a shared-equity program where the government contributes between 5% and 10% of a first-time buyer's down payment and shares in any increase or decrease in the home value until the loan is repaid. The maximum eligible household income has been raised to $150,000 and participants can borrow up to 4.5 times their household income. The changes are limited to those living in Toronto, Vancouver and Victoria. The increase in the maximum household income and borrowing limit means first-time buyers can now qualify for a purchase price up to $722,000, up from $505,000. This comes at a time when the average house price has soared to $716,000. The program is an "incentive" program as opposed to an "assistive" one, with the tradeoff being reduced purchasing capacity and government co-ownership.