MORTGAGES • First Time Home Buyer

Your Path to Homeownership

Navigating a large purchase can be overwhelming, especially if you are a first time home buyer. That’s where we come in. We walk you through each step of the process, working with everyone involved, such as the Realtor, Home Inspector and Lawyer. Let us take it off of your plate.

First Time Home Buyer


Down Payment Sources

Accumulating the down payment is the biggest challenge prospective homebuyers face. The down payment can come from several sources. According to the “2021 First-Time Homebuyer Survey & Financial Fitness Study” performed by Sagen, the most common source for homebuyers ‘ down payment was their Savings, followed by their RRSP.

The CRA offers a Home Buyers’ Plan for those wishing to withdraw from their RRSP. The Home Buyer’s Plan is a program that allows you to withdraw from RRSPs to buy or build a qualifying home.

Another common source many homebuyers have availed of is gifted funds from an immediate family member. Each lender will have its policies surrounding this source of down payment. Alternatively, you can borrow part or all of the down payment. Borrowed down payments are not accepted by all lenders and come with additional qualifying criteria.

First Time Home Buyer


First-Time Homebuyers Incentive

The First-Time Homebuyers Incentive (FTHBI) is a federal program offered through the Canadian Mortgage and Housing Corporation (CMHC) in part of the National Housing Strategy. It allows qualified first-time homebuyers to reduce their mortgage payment with an interest-free incentive.


Purchase Price = $300,000

Down Payment 5%: ($15,000)
FTHBI 5%: ($15,000)

Total Down Payment: ($30,000)

CMHC Insurance Premium: $10,800¹

Total Mortgage Amount = $280,800

Monthly P&I Payment = $1,331.59²

Without FTHBI

Purchase Price = $300,000

Down Payment 5%: ($15,000)

Total Down Payment: ($15,000)

CMHC Insurance Premium: $11,400¹

Total Mortgage Amount = $296,400

Monthly P&I Payment = $1,405.56²

¹ CMHC Insurance premium of 4% of the required mortgage amount. ² Based on a 25-year amortization, compounding semi-annually, not in advance, at 3.00% interest.

The 5-10% incentive is interest-free and is paid back after 25 years or upon the home’s sale. The incentive, combined with the down payment, makes for a lower mortgage loan and monthly payment. Certain conditions apply. Please ask your broker for details.

Homebuyers Plan


Access Your RRSP

The Home Buyers’ Plan (HBP) is a federal government program offered through the CRA.

This will allow you to make a withdrawal from your registered retirement savings plan (RRSP) without paying taxes at the time of withdrawal. The maximum you can withdraw is $35,000.


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