The CMHC First-Time Home Buyer Incentive: 2026 Repayment Hub

What was the FTHBI program?

The First-Time Home Buyer Incentive (FTHBI) was a federal program launched in September 2019 by the Government of Canada to help lower-income buyers reduce their monthly housing costs. It operated as a shared-equity mortgage, where the Canada Mortgage and Housing Corporation (CMHC) provided a second mortgage to top up the buyer's down payment:

• 5% of the purchase price for a resale home.
• 5% or 10% of the purchase price for a newly constructed home.

The loan did not accumulate interest and required no monthly payments. In exchange, the government took a corresponding equity stake (5% or 10%) in the property. This meant the government shared in both the appreciation (gains) and depreciation (losses) of your home's value.

The program is discontinued

The federal government officially retired the FTHBI on March 21, 2024. No new or resubmitted applications were accepted after this date, and all approvals ceased on March 31, 2024. The program was discontinued due to low adoption, particularly in high-cost real estate markets like the Fraser Valley (Surrey, Langley, Abbotsford), where strict household income limits ($120,000–$150,000) and borrowing caps (4 to 4.5 times income) made it difficult for buyers to purchase a home.

If you are an active homebuyer in 2026, you cannot apply for this incentive. Instead, you should focus on current programs like the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan (HBP).

FTHBI Repayment: Voluntary vs. Mandatory

If you bought your home using this incentive between September 2019 and March 2024, you still hold an active second mortgage registered on your property title. You must repay the incentive in full upon one of the following mandatory triggers:

1. The 25-Year Mark: The loan must be repaid 25 years from the date the funds were originally advanced.
2. Property Sale: Selling your home in an arm's-length transaction triggers mandatory repayment from the sale proceeds.
3. Title / Status Changes: Porting your first mortgage, changing the property use (converting to a rental), or buyouts during relationship breakdown will also trigger a repayment review.

You can also make a voluntary early repayment at any time without prepayment penalties. This is a common choice for owners who want to refinance their first mortgage to borrow equity (which the program administrator blocks) or who are planning major renovations that would raise the home's value (and consequently raise what they owe the government).

The 8% Annual Cap Update (June 1, 2022)

Under the original program rules, the repayment math was a simple percentage of current value. In rapidly rising markets, this meant the government could capture a massive return. On June 1, 2022, the CMHC introduced an 8% per annum cap to protect homeowners.

The cap is calculated as 8% simple interest per year (non-compounded) on the original incentive amount.

• Appreciation Cap (Retroactive): The maximum amount you repay is capped at the original incentive plus 8% per year simple interest. This applies to all agreements since 2019.
• Depreciation Cap (Non-Retroactive): If the property loses value, the government's loss is also limited to 8% per year, establishing a minimum floor. This only applies to agreements signed on or after June 1, 2022.

Step-by-Step Payout Process

To complete a voluntary early repayment, you must coordinate with the Program Administrator (CMHC) and their administrative partner, FNF Canada. The steps are:

1. Order an Appraisal: Hire an independent, designated appraiser (CRA or AACI) to determine the fair market value of your property.
2. Submit the Repayment Form: Send the appraisal and the CMHC Repayment Request Form to the Program Administrator for valuation review.
3. Conveyance & Discharge: Once approved, the administrator will issue a payout statement. Your real estate lawyer or notary must handle the funds transfer and discharge the second mortgage from your title.

For detailed operational guidelines, contact the Program Administrator at 1-877-884-2642or email FTHBIOps@cmhc-schl.gc.ca.

Official Program Documentation & Core Policy Details

During the FTHBI program's operational span (2019–2024), three primary documents governed how the shared-equity loan was administered, calculated, and legally registered. The core policies and operational parameters from these official CMHC packages have been compiled directly below:

1. The Repayment Factsheet: Math & Appraisal Standards

The Repayment Factsheet outlines the formulas used to calculate what you owe the government upon repayment. Repayment is based on the fair market value of the property at the time of repayment, not the amount you originally borrowed.

• The 8% Appreciation Cap (Gain): If your home has increased in value, the government's share of that appreciation is capped at a maximum of 8% simple interest per year (non-compounded) on the original incentive amount. The formula to calculate your maximum repayment is: Original Incentive + (Original Incentive × 8% × Years Held).
• The 8% Depreciation Cap (Loss): If your home has lost value, the government's shared loss is also limited to 8% per year simple interest on the incentive amount, establishing a minimum repayment floor. The formula for the minimum repayment is: Original Incentive - (Original Incentive × 8% × Years Held). Note that the loss cap only applies to agreements signed on or after June 1, 2022.
• Independent Valuation: To establish your property's current value for voluntary early repayment, you must hire an independent appraiser who holds an active professional designation (either CRA or AACI) and is a member in good standing of the Appraisal Institute of Canada (AIC). You must submit the completed appraisal along with the CMHC Repayment Request Form.

2. The Operational Policy Manual: Refinancing & Swapping

The Operational Policy Manual serves as the primary rulebook for lenders and legal representatives handling post-approval changes or mortgage renewals.

• Mortgage Refinancing: Refinancing your first mortgage is permitted without triggering repayment of the incentive, provided you are only renegotiating rates or terms and the principal balance does not increase. The FTHBI second mortgage must maintain its second-ranking position, and the total combination of all charges against the property must not exceed an 80% Loan-to-Value (LTV) ratio at the time of the refinance.
• Mortgage Switching (Transfers): Switch transfers (moving your first mortgage to another financial institution at renewal) are fully permitted without triggering repayment, provided the principal amount is not increased. Postponement documentation must be registered by your lender to keep the FTHBI in second position on title.
• Postponement Fees: Any administrative, legal, or registration fees required to prepare and file postponement/subordination agreements are the sole responsibility of the borrower.

3. Shared Equity Mortgage Information Package: Legal Covenants

The Shared Equity Mortgage Information Package outlines the legal structure of the loan covenants registered against your property title.

• Second Title Charge: The incentive is registered as a second-ranking charge (a Shared Equity Mortgage or SEM) on your home's title, immediately behind your primary insured mortgage.
• Maximum 25-Year Term: The loan has a strict maximum life of 25 years from the date of the original advance. If the property is not sold before this date, the incentive must be paid off in full based on the 25-year appraisal valuation.
• Non-Portability: The shared-equity loan is tied directly to the property. It cannot be ported to a new home. Selling your property triggers mandatory immediate repayment from the sale proceeds.
• Title & Ownership Changes: Transferring title (such as adding/removing a co-owner or a spouse during a separation) triggers an administrative review. If the transaction involves new insured funds (e.g., one partner buying out another using a new insured refinance), the incentive must be repaid in full.