The CMHC First-Time Home Buyer Incentive: The Repayment Guide
The federal First-Time Home Buyer Incentive is retired, but thousands of Fraser Valley homeowners still hold these shared-equity mortgages on their properties. Navigating the path to paying off the government's share of your home can be more complicated than it looks, especially with policy updates like the 8% appreciation cap and complex rules around mortgage refinancing. Here is the FRIVE team's plain-English guide to managing, calculating, and repaying your incentive.
If you bought a home between September 2019 and March 2024 using this incentive, you signed a second mortgage with the Government of Canada. This second mortgage doesn't carry monthly interest, but it does carry a percentage-based share in your property's value. This page is the FRIVE team's plain-English guide to how that shared equity works, when you have to pay it back, how to calculate your repayment amount under the current rules, and what active options exist for first-time buyers in the Fraser Valley today. We have split the details into separate, in-depth sub-pages and tied them all back to this central pillar.
The map of the decision: Payoff now or wait?
When we sit down with Fraser Valley townhouse and condo owners who used the First-Time Home Buyer Incentive, the conversation is rarely about the past. It is almost always about the future. "Should I pay this off early, or should I let it sit for the full 25 years?"
The answer depends on a mix of local property trends, your long-term refinancing plans, and whether you intend to make significant renovations. Because the government's repayment is based on a percentage of your home's current market value, any improvements you make that increase the property value will also increase the amount you owe the government, unless you repay the incentive before starting the renovations.
The program was structured as a shared-equity model:
- Resale Homes: The incentive was a 5% contribution toward your down payment.
- New Construction: The incentive was either 5% or 10% of the home's purchase price.
Because the Government of Canada is a co-investor in your property's equity, they share in both the upside (appreciation) and the downside (depreciation) of your home. If your home value has increased from $500,000 to $700,000, your 5% repayment obligation has risen from $25,000 to $35,000, subject to the 8% per annum cap limit.
Where most owners get stuck
In our experience working with strata owners in Surrey, Langley, and Abbotsford, there are three common situations where FTHBI participants run into unexpected hurdles:
Refinancing for equity takeouts. Many owners assume they can refinance their first mortgage to consolidate debt or fund renovations while leaving the FTHBI mortgage in second position. However, the Program Administrator does not allow you to increase the principal balance of your first mortgage without triggering a mandatory repayment of the shared-equity loan. If you need to borrow against your home's equity, you must plan to pay off the FTHBI balance in full as part of the refinance process.
Co-borrower buyouts during a breakup. When relationship circumstances change and one co-borrower buyouts the other to keep the property, title must be transferred. Under the program rules, transferring title to a single borrower is considered a "change in ownership" and will trigger a mandatory repayment audit. The Program Administrator must review the transaction, and in many cases, the buyout will trigger the requirement to repay the incentive in full.
Major home improvements. If you plan to add a finished basement, renovate your kitchen, or make other substantial improvements that raise your home's value, doing so while the FTHBI is active means you will owe the government a percentage of that value increase. We typically advise owners in these scenarios to complete a voluntary repayment of the incentive before starting the renovation work, based on the home's pre-improvement value.
The numbers you need
To manage your existing agreement, you should keep the following administrative dates, caps, and contact points handy:
- Program Timeline: The FTHBI was active for applications from September 2, 2019, to March 21, 2024.
- Maximum Term: The shared-equity mortgage has a maximum lifespan of 25 years from the date the funds were advanced.
- The 8% Cap Rule: Implemented on June 1, 2022, this policy limits the government's maximum shared gain or loss to 8% per annum (simple, non-compounded) of the original incentive amount.
- Program Administrator Contact: For statements, payouts, or voluntary repayment approvals, contact the Program Administrator at 1-877-884-2642 or email FTHBIOps@cmhc-schl.gc.ca.
We have documented the exact step-by-step payoff process, including how to select a certified appraiser and coordinate with FNF Canada (the administrative service provider), in our Repayment Triggers & Process page.
Frequently Asked Questions
These are the broad questions we hear from homeowners across the Fraser Valley regarding the FTHBI. The specific mathematical examples and legal triggers are detailed in the sub-pages.
What happens if my property value has dropped below the original purchase price?
If your property value has declined, the amount you repay is reduced proportionally. For example, if you received a 5% incentive and your home's fair market value has fallen, you will repay 5% of that lower value, provided your agreement was signed on or after June 1, 2022 (when the depreciation loss cap took effect).
Can I repay only a portion of the incentive early?
No, the program does not allow partial repayments. Any voluntary payoff must be for the full outstanding amount of the shared-equity mortgage.
Is the FTHBI interest-bearing?
No, the incentive does not accumulate interest. It is a shared-equity mortgage, meaning the government's return is tied entirely to the changing market value of the property, not a fixed interest rate.
How does the government verify my home's value if I'm not selling?
For a voluntary early repayment, you must hire a qualified, independent appraiser to prepare a market valuation. The Program Administrator must review and concur with this appraisal before setting the final payoff figure.
Does the FTHBI affect my eligibility for other programs?
No, holding an existing FTHBI mortgage does not retroactively disqualify you from other tax credits or programs you already used, such as the Home Buyers' Amount or the RRSP Home Buyers' Plan. However, you cannot use new buyer programs like the FHSA to pay off an existing FTHBI loan.
What happens if I keep the home for the full 25 years?
At the 25-year mark, you must repay the incentive in full. You will need to obtain a professional appraisal at that time to determine the fair market value, which will dictate the final repayment amount.
Can I port my FTHBI loan to a new home if I move?
No, the incentive cannot be ported to a new property. Selling your current home triggers a mandatory repayment of the shared-equity mortgage from the sale proceeds.
Who pays for the appraisal when I want to repay the loan?
The homeowner is responsible for hiring the appraiser and covering all appraisal fees. The appraiser must hold an active designation (such as CRA or AACI) to be accepted by the Program Administrator.
What was the original CMHC First-Time Home Buyer Incentive?
The CMHC First-Time Home Buyer Incentive was a federal shared-equity program where the government provided 5% or 10% of a home's purchase price toward a down payment. In exchange, the government registered a second mortgage and shared in the home's future value changes.
Is the FTHBI program still accepting new applications in 2026?
No, the program is completely retired. The federal government stopped accepting new or resubmitted applications on March 21, 2024, and no new approvals have been issued since March 31, 2024. Active buyers should look to current alternatives like the FHSA.
What is the 8% annual appreciation cap on repayments?
The 8% cap is a limit on the government's share of your home's appreciation, calculated as 8% simple interest per year on the original incentive. It prevents homeowners in rapidly rising markets from having to pay back runaway gains.
Does refinancing my first mortgage force me to repay the FTHBI?
Refinancing does not automatically trigger repayment if you are only changing rates or terms without increasing the principal. However, if you do a cash-out refinance or equity buyout, the administrator requires you to repay the FTHBI first.
Sources & Reference Documents
- CMHC FTHBI Repayment Hub Integrated program guidelines, calculations, and operational policies.
Documentation and policies are sourced from the Canada Mortgage and Housing Corporation (CMHC). Market values and local property conditions vary. Talk to your mortgage broker or real estate lawyer before making financial decisions.
Related FRIVE Reading
If you are navigating homeownership or planning your next move in the Fraser Valley, these resources can help:
- BC Buyer Programs & Taxes (2026) The active programs first-time buyers should stack today.
- Strata Documents Review Checklist What to look for in your strata logs if you are buying a condo or townhouse.
- How Much Affordability Does the Stress Test Remove? An analysis of qualifying rates in the current market.
Next Steps: Talk with the FRIVE Team
If you own a home with an active First-Time Home Buyer Incentive and are trying to figure out how a refinance, a home sale, or a renovation will impact your repayment obligations, we can help you model the numbers.
Get in touch with the FRIVE team, start a low-pressure conversation or browse active Fraser Valley listings if you are planning your next move.
Frequently asked questions
The questions we hear most often from first-time buyers in actual FRIVE meetings.
What was the CMHC First-Time Home Buyer Incentive?
- The First-Time Home Buyer Incentive (FTHBI) was a federal shared-equity program introduced by the Government of Canada in September 2019. It provided eligible buyers with 5% or 10% of their home's purchase price toward a down payment in exchange for a corresponding equity stake. The program was officially discontinued on March 21, 2024.
Is the CMHC First-Time Home Buyer Incentive still accepting applications in 2026?
- No, the program is no longer accepting new or resubmitted applications. The final deadline for submissions was March 21, 2024, and no new approvals were issued after March 31, 2024. This guide is written for existing participants who already hold these shared-equity loans.
Where these numbers come from
- 1First-Time Home Buyer Incentive Canada Mortgage and Housing Corporation. Accessed May 28, 2026.
- 2First-Time Home Buyer Incentive Repayment Factsheet Canada Mortgage and Housing Corporation. Accessed May 28, 2026.
- 3Evaluation of the Shared Equity Mortgage Programs Canada Mortgage and Housing Corporation. Accessed May 28, 2026.
Tax thresholds, program limits, and rates change. We update this page when we notice a change. Before signing anything, verify the current figure with the linked source, or ask your mortgage broker.
