🏡 Top Mortgage Solutions for First-Time Homebuyers in Canada

1. First-Time Home Buyer Incentive (FTHBI)

This federal program offers shared equity loans of 5% or 10% of the purchase price of your home. The government essentially helps you with part of the down payment in exchange for a stake in the home’s future value.

• Reduces your monthly mortgage payments

• No ongoing payments required; repay when you sell or after 25 years

• Available for homes under a specific price cap based on your region

Note: The FTHBI is being phased out in some markets, so let’s discuss whether it’s still an option in your area.

2. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows you to withdraw up to $60,000 (effective April 2024) from your RRSP tax-free to use as a down payment.

• Must repay over 15 years

• Each partner in a couple can withdraw, effectively doubling your available funds

• Must be a first-time buyer (or not have owned a home in the last four years)

3. Tax-Free First Home Savings Account (FHSA)

Introduced in 2023, the FHSA combines the best features of an RRSP and TFSA. It allows you to save for your first home tax-free.

• Contribute up to $8,000 per year, to a lifetime max of $40,000

• Contributions are tax-deductible, and withdrawals for a first home are tax-free

• Can be used in combination with the HBP

This account can supercharge your down payment savings strategy if you start early.

4. Land Transfer Tax Rebates

If you’re buying in Ontario, British Columbia, or Prince Edward Island—or in cities like Toronto—you may be eligible for land transfer tax rebates for first-time buyers:

• Ontario: Up to $4,000 rebate

• Toronto: Additional municipal rebate of up to $4,475

• BC: Rebates for homes under $500,000 (partial rebates up to $525,000)

We’ll make sure you apply for every rebate you’re eligible for to lower your closing costs.

🧰 Mortgage Options Built for First-Time Buyers

Even beyond government programs, there are flexible mortgage products available to help make homeownership more affordable:

🔹 Insured Mortgages

If you’re putting down less than 20%, your mortgage must be insured through CMHC, Sagen, or Canada Guaranty. While this adds an insurance premium to your loan, it:

• Allows for down payments as low as 5%

• Comes with competitive interest rates

• Helps first-time buyers qualify more easily

🔹 Fixed vs. Variable Rates

Choosing between a fixed and variable rate can feel confusing. I’ll walk you through the pros and cons based on your budget, risk tolerance, and market conditions.

🔹 Flexible Prepayment Options

Many first-time buyers want to pay down their mortgage faster. I’ll help you choose a mortgage with options like:

• Lump-sum payments

• Double-up payments

• Early renewal with minimal penalties

🗂️ Why Work With a Mortgage Broker?

As a mortgage broker, I’m not tied to one bank. That means I can shop around on your behalf and find the most competitive rate and product—including lender-exclusive offers and first-time buyer perks you won’t find on your own.

Here’s how I help:

• Compare dozens of lenders to find the right fit

• Help you get pre-approved and understand your maximum affordability

• Advise you on how to combine government programs for maximum benefit

• Support you through the entire process—from application to closing day

👣 Next Steps for First-Time Buyers

Ready to start your journey to homeownership? Here’s how to begin:

1. Let’s talk about your goals and financial situation

2. Get pre-approved so you know your budget

3. Explore programs and mortgage solutions customized for you

4. Find your dream home—and I’ll take care of the financing

📞 250-863-9947
📧 craig@craigbarton.ca
🌐 craigbarton.ca

Buying your first home is a big step—but you don’t have to do it alone. Let’s make your dream home a reality.