What programs are available to first-time home buyers in BC in 2026?

BC first-time buyers can stack five main programs: the BC Property Transfer Tax exemption (up to $8,000 savings on homes under $835,000), the RRSP Home Buyers' Plan (withdraw up to $60,000 tax-free), the First Home Savings Account (contribute up to $40,000 tax-free and withdraw tax-free for a first home), the federal First-Time Home Buyers' Tax Credit ($1,500 back on your tax return), and the GST/HST New Housing Rebate on new construction. Couples can combine HBP and FHSA limits, accessing up to $200,000 in tax-advantaged down payment money between them.

How much down payment do I need for a first home in the Fraser Valley?

The minimum is 5% on the first $500,000 of the purchase price, then 10% on the portion between $500,000 and $1.5 million. For homes at or above $1.5 million, you need 20% because CMHC mortgage insurance no longer applies. For a $700,000 Surrey townhouse, the minimum down payment is $45,000 ($25,000 on the first $500K plus $20,000 on the next $200K).

What is the first step a first-time buyer in BC should take?

Open a First Home Savings Account (FHSA) as early as possible, even if you are three to five years from buying. The $8,000 annual contribution room only accrues once the account is open, so waiting costs you real money. After that, talk to a mortgage broker 6 to 12 months before you plan to buy so there is time to fix any credit or income issues before your pre-approval.

What income do I need to qualify for a home in the Fraser Valley in 2026?

For a $700,000 townhouse with the minimum $45,000 down payment, a 30-year amortization, and a 4.5% fixed rate, you need roughly $135,000 to $145,000 in qualifying household income after applying the federal stress test at 6.5%. Most first-time buyers in Surrey and Langley reach this threshold by co-buying with a partner or including a co-signer.

Can I use the FHSA and the RRSP Home Buyers' Plan together?

Yes, they stack. On the same home purchase, you can withdraw up to $60,000 from your RRSP via the Home Buyers' Plan and up to $40,000 from your FHSA, in addition to claiming the BC Property Transfer Tax exemption. For couples where both qualify, the combined maximum is $120,000 from RRSPs and $80,000 from FHSAs, $200,000 in total tax-advantaged down payment funds.

What changed for first-time buyers in BC in 2025 and 2026?

Three significant changes came into effect: (1) The 30-year amortization became available on CMHC-insured mortgages for first-time buyers purchasing new construction (August 2024), then expanded to all insured first-time buyer purchases (December 2024). (2) The insured mortgage cap was raised from $1 million to $1.5 million (December 2024), allowing insured mortgages on higher-priced properties. (3) The GST New Housing Rebate was expanded, homes up to $1 million now qualify (Royal Assent March 12, 2026), up from the previous $450,000 threshold, potentially saving first-time buyers up to $50,000 on new construction.

Is it a good time to buy a home in the Fraser Valley in 2026?

The Fraser Valley's sales-to-active ratio was around 11% as of March 2026, placing it in buyer's market territory (under 12% is buyers' advantage). Condo and townhouse prices are softer than their 2022 peak. For buyers who can qualify and are planning to stay 5+ years, the combination of buyer-friendly conditions, a 30-year amortization on insured mortgages, and the 2026 GST rebate expansion makes the math more workable than it was in 2023 or 2024. That said, timing the market is not reliable, buy when your finances are ready, not based on a rate prediction.

What is the BC Property Transfer Tax exemption for first-time buyers?

BC's first-time home buyer PTT exemption gives a full exemption on the first $500,000 of value when the home's fair market value is $835,000 or less (effective April 1, 2024). There is a partial exemption on homes priced between $835,000 and $860,000. For new construction, the thresholds are higher: full exemption up to $1,100,000, partial between $1,100,000 and $1,150,000. Personal eligibility rules also apply, you must be a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and intend to occupy the property as your principal residence.

How does the stress test affect first-time buyers in Fraser Valley in 2026?

The federal mortgage stress test requires lenders to qualify you at the higher of your actual contract rate plus 2%, or the Bank of Canada's benchmark rate (currently 5.25%). If you're getting a 4.5% mortgage, you qualify at 6.5%. This reduces maximum purchase price by roughly 15 to 20% compared to qualifying at the contract rate alone. For a $700,000 purchase you need approximately $135,000 to $145,000 in household income. The stress test applies to all federally regulated lenders regardless of down payment size.

Should I buy a condo or townhouse as a first-time buyer in the Fraser Valley?

Condos typically cost $150,000 to $250,000 less than comparable townhouses in the Fraser Valley, which lowers the down payment hurdle significantly. Townhouses usually have no neighbours above or below, outdoor space, and lower strata fees on average. The right choice depends on budget, lifestyle, and resale horizon. Buyers with under $60,000 saved generally start with a condo; buyers who can reach a $80,000 to $100,000 down payment have townhouse options in Langley, Abbotsford, and Chilliwack. Many first-time buyers start in a condo and move to a townhouse 5 to 7 years later.

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.

When must the FTHBI shared-equity mortgage be repaid?

The incentive must be repaid in full after 25 years from the original advance date, or when the property is sold, whichever occurs first. You can also choose to make a voluntary full repayment at any time prior to these events without prepayment penalties.

How is the repayment amount for the FTHBI calculated?

Repayment is based on the fair market value of your home at the time of repayment, not the original amount you borrowed. If you received a 5% incentive, you repay 5% of the home's value at repayment, subject to the 8% annual appreciation/depreciation cap implemented in June 2022.

What is the 8% per annum limit on FTHBI gains and losses?

The 8% limit is a cap on the government's share of appreciation or depreciation, calculated as simple interest per year (8% per annum, non-compounded) on the original incentive amount. It protects buyers from runaway property appreciation and limits the government's shared loss on depreciated sales.

Is the 8% appreciation cap retroactive for older agreements?

Yes. The CMHC retroactively applied the 8% annual appreciation cap to all program agreements since the launch of the program in September 2019. However, the 8% depreciation loss cap only applies to agreements signed on or after June 1, 2022.

Does refinancing my first mortgage trigger FTHBI repayment?

No, refinancing your first mortgage does not automatically trigger mandatory repayment of the incentive, provided the principal amount is not increased. If you are adding equity takeouts or increasing the loan amount, the program administrator will require full repayment first.

What other events trigger mandatory repayment of the incentive?

Mandatory repayment is triggered by a property sale, the end of the 25-year term, porting your mortgage to a new home, a change in property status (converting to rental), or certain title transfers such as buying out a co-borrower during a relationship dissolution.

How do I initiate a voluntary early repayment of the FTHBI?

To repay voluntarily, you must obtain a professional appraisal from an independent appraiser to establish your home's fair market value. You then submit the appraisal and a repayment request to the Program Administrator for approval and payout coordination.

What are the best alternatives to the FTHBI for buyers in 2026?

First-time buyers in 2026 should utilize active federal and provincial programs, including the First Home Savings Account (FHSA), the RRSP Home Buyers' Plan (which allows withdrawals up to $60,000), the BC Property Transfer Tax exemption, and the federal GST rebates.

What events trigger mandatory repayment of the CMHC FTHBI?

Mandatory repayment is triggered when you sell the property (via an arm's-length transaction), reach the 25-year maturity date of the loan, port your first mortgage to a new property, or make unauthorized changes to the title (such as relationship buyouts).

Does refinancing my mortgage trigger mandatory FTHBI repayment?

Refinancing does not trigger repayment if it is a straight 'rate-and-term' refinance where you do not increase the principal amount. If you do a cash-out refinance to extract equity, the Program Administrator requires full repayment of the incentive.

What is the process for a voluntary early repayment of the FTHBI?

To repay voluntarily, you must hire a certified appraiser (CRA or AACI) to value your home. You then submit the appraisal report and a repayment request to the Program Administrator. Once approved, your lawyer coordinates the payout and discharges the mortgage.

Who is FNF Canada and what is their role in FTHBI repayment?

FNF Canada is the third-party service provider appointed by the government to handle the administration, document processing, and closing of FTHBI files. Your lawyer will coordinate directly with FNF Canada to secure your discharge.

Can I sell my home without paying back the incentive?

No. The FTHBI is registered as a second mortgage on your property title. At completion, the buyer's lawyer will not release funds until your lawyer pays off the FTHBI balance to secure a clear title for the new owner.

What happens to the FTHBI if I convert my home into a rental property?

Converting the property into a rental or investment property is a violation of the program's covenant, which requires the home to remain your principal residence. This change in usage triggers mandatory full repayment of the incentive.

How long does the voluntary repayment process take to complete?

The voluntary repayment process typically takes between 4 to 6 weeks. This includes the time needed to secure the appraisal, wait for Program Administrator approval (usually 10 business days), and coordinate legal conveyancing.

Do I need a lawyer to handle a voluntary early repayment?

Yes, you must retain a real estate lawyer or notary public. They are responsible for receiving the payout funds from you, submitting them to the Program Administrator, and registering the discharge of the second mortgage at the Land Title Office.

Can a co-owner buyout another co-owner without triggering repayment?

A co-owner buyout usually requires a transfer of land title and a refinance of the first mortgage. Because these represent a change in ownership and potential refinancing changes, they must be reviewed by the Program Administrator and often trigger mandatory repayment.

CMHC FTHBI Repayment Triggers & Payoff Process

The First-Time Home Buyer Incentive (FTHBI) operates as a second charge on your home's title. Because it sits behind your primary mortgage, any major changes to your living situation, ownership structure, or primary financing can have direct consequences for your incentive loan. Here is the FRIVE team's plain-English guide to the triggers of mandatory repayment, the rules surrounding mortgage refinancing, and the step-by-step process to voluntarily pay off your incentive early.

Book a no-pressure chat Browse homes Michael Goering, BC-licensed REALTOR®Updated July 7, 2026 · 6 min read

01The triggers of mandatory repayment 02Refinancing rules: What is allowed?03The step-by-step voluntary payoff process 04Frequently Asked Questions 05Sources & Reference Documents

The triggers of mandatory repayment

The shared-equity mortgage registered by the CMHC is not a permanent loan. The program guidelines define several events that will immediately trigger a mandatory audit and requirement to repay the loan in full:

1. The 25-Year Maturity Date

The mortgage has a maximum lifespan of 25 years from the date the funds were originally advanced. If you have not repaid the loan by this date, you must pay it off in full based on the fair market value at the 25-year mark.

2. The Sale of the Property

Selling your home in an arm's-length transaction is the most common trigger. When a sale occurs, the buyer's lawyer will require a clear title. Your lawyer must request a payoff statement, calculate the government's share from the sale price, and pay it off from the sale proceeds at completion.

3. Porting Your First Mortgage

If you sell your current home and purchase a new one, you cannot "port" the FTHBI mortgage to the new property. The sale of the original home triggers mandatory repayment, and the second mortgage must be discharged.

4. A Change in Property Usage

The program requires the home to remain your principal residence. If you move out and convert the property into a rental or investment unit, this violates the program covenant and triggers mandatory full repayment of the incentive.

5. Title Transfers and Ownership Changes

Any transfer of ownership, including adding a spouse to title, removing a co-borrower during a relationship dissolution, or transferring title to a corporation, is considered a change in ownership and will trigger a repayment review.

Refinancing rules: What is allowed?

Many FTHBI participants expect to refinance their primary mortgage to take advantage of lower interest rates or access equity for renovations. The Program Administrator has strict guidelines regarding what is permitted:

Allowed: Straight "Rate-and-Term" Refinancing

You can refinance your first mortgage to secure a lower interest rate or change the amortization period, provided the principal loan amount is not increased. The Program Administrator will sign a postponement agreement, allowing the new primary mortgage to sit in first position while the FTHBI second mortgage remains in place.

Forbidden: Cash-Out Refinancing / Equity Takeouts

If you refinance your first mortgage to extract equity (e.g., adding a home equity line of credit or increasing the principal balance to consolidate debt), the Program Administrator will not sign a postponement. You must repay the FTHBI loan in full before the new, larger first mortgage can be registered.

If you are planning to refinance, we advise discussing the FTHBI payoff with your mortgage broker early. If you need to pay off the incentive, the payoff funds must be factored into your new loan's borrowing requirements.

The step-by-step voluntary payoff process

If you want to clear the second mortgage from your title before a sale or a cash-out refinance, or simply want to lock in your payoff amount before completing major renovations, you can do so by following this voluntary repayment process:

Appraise

Hire a CRA/AACI appraiser

Submit

Send report and request form

Review

CMHC review (10 business days)

Value

Receive official Payout Statement

Payout

Lawyer executes and discharges

Step 1: Hire a Certified Appraiser

You must hire an independent appraiser holding an active designation of Canadian Residential Appraiser (CRA) or Accredited Appraiser Canadian Institute (AACI). You are responsible for paying the appraisal fee (typically $400 to $600 in the Fraser Valley). The appraiser will inspect the property and prepare a market valuation.

Step 2: Submit to the Program Administrator

Your appraiser or lawyer will submit the appraisal report along with the official FTHBI Repayment Request Form to the Program Administrator. Submissions can be emailed directly to FTHBIOps@cmhc-schl.gc.ca.

Step 3: CMHC Review and Payout Statement

The Program Administrator will review the appraisal report (usually taking 10 business days). If they concur with the valuation, they will calculate the final payoff figure (applying the 8% per annum cap rules) and issue an official Payout Value Statement. This statement is typically valid for 90 days.

Step 4: Lawyer Coordinates Payout

You must retain a real estate lawyer or notary public to handle the conveyancing. Your lawyer will coordinate with FNF Canada (the administrative service provider) to arrange the transfer of funds. Your lawyer will collect the payout money from you, submit it to the Program Administrator, and register the discharge of the second mortgage at the Land Title Office, leaving you with a clear title.

For details on how the final payoff amount is calculated under the 8% cap, see our FTHBI Repayment Calculations page.

Frequently Asked Questions

These are the common process-related questions we hear from Fraser Valley homeowners looking to discharge their FTHBI loans.

What happens if the Program Administrator rejects my appraisal?

If the administrator believes the appraisal does not represent fair market value, they may reject it and request additional comparable sales, or require a second appraisal. This is why it is crucial to use an independent, designated appraiser who is familiar with FTHBI requirements.

Can I repay the incentive using my credit card or bank transfer?

No. All repayments must be processed through your lawyer or notary public. Your lawyer will request bank drafts or certified funds from you and handle the secure electronic transfer to FNF Canada.

If I'm selling my home, do I need to pay for an appraisal?

No. For an arm's-length sale, the Program Administrator will use the sale price in your contract of purchase and sale to calculate the payoff. An appraisal is only required for voluntary repayments where no sale is occurring.

Can I discharge the FTHBI mortgage myself without a lawyer?

No. Registrations and discharges at the BC Land Title Office must be executed by a licensed lawyer or notary public to ensure the security release is registered legally.

How do I contact FNF Canada directly?

Homeowners do not typically interact with FNF Canada directly. FNF Canada communicates exclusively with registered solicitors, lenders, and the Program Administrator. Your lawyer will handle all coordination with them.

What happens if I miss the 90-day validity window on my Payout Statement?

If the 90-day window expires before you complete the repayment, you must request an extension from the Program Administrator. They may require an updated appraisal letter if market conditions have changed significantly.

Does the FTHBI second mortgage have a monthly fee?

No, there are no monthly fees, interest charges, or administrative costs associated with keeping the FTHBI mortgage active on your title.

Can I refinance my mortgage with a different lender?

Yes, you can switch lenders (a process called a mortgage transfer or switch) for a better rate, provided the principal balance does not increase. Your new lender's solicitor will coordinate the postponement with FNF Canada.

How do I find out how much my original FTHBI loan was?

You can find the original incentive amount on your Land Title search printout (which lists the second charge in favour of the CMHC) or on the closing statement of adjustments provided by your lawyer when you bought the home.

Can I pay off the FTHBI loan using funds gifted by a family member?

Yes. The Program Administrator does not restrict the source of your repayment funds. The money can come from savings, family gifts, or the proceeds of a primary mortgage refinance (provided the FTHBI is paid off at completion).

Sources & Reference Documents

CMHC FTHBI Repayment Hub Integrated program guidelines, calculations, and operational policies.

Questions we get

Frequently asked questions

The questions we hear most often from first-time buyers in actual FRIVE meetings.

What events trigger mandatory repayment of the CMHC FTHBI?: Mandatory repayment is triggered when you sell the property (via an arm's-length transaction), reach the 25-year maturity date of the loan, port your first mortgage to a new property, or make unauthorized changes to the title (such as relationship buyouts).
Does refinancing my mortgage trigger mandatory FTHBI repayment?: Refinancing does not trigger repayment if it is a straight 'rate-and-term' refinance where you do not increase the principal amount. If you do a cash-out refinance to extract equity, the Program Administrator requires full repayment of the incentive.

Sources

Where these numbers come from

1First-Time Home Buyer Incentive Canada Mortgage and Housing Corporation. Accessed May 28, 2026.
2Evaluation 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.

Keep reading

Next in the guide

FTHBI Repayment Hub Index

Return to the main FTHBI Repayment Hub containing core documentation details.

Read

Detailed Repayment Guide

Read the comprehensive review of how to manage and repay the FTHBI loan.

Read

Repayment Calculations & Math Scenarios

See worked mathematical examples of the 8% simple interest gain and loss caps.

Read

The 8% Cap Policy Rules

Learn about the June 2022 policy update, compound vs. simple interest, and retroactivity.

Read

Discontinuation & Active 2026 Alternatives

Why the FTHBI ended and how to stack active programs (FHSA, HBP, BC PTT, GST).

Read

Ready when you are

Stop paying off
someone else's mortgage.

Drop your email. We'll send one honest reply, no funnel, no upsell, no agent assistant blasting you at 7am on a Sunday.

Explore Listings

One reply, that's it Within 24h, usually faster BC-licensed humans

The triggers of mandatory repayment

1. The 25-Year Maturity Date

2. The Sale of the Property

3. Porting Your First Mortgage

4. A Change in Property Usage

5. Title Transfers and Ownership Changes

Refinancing rules: What is allowed?

Allowed: Straight "Rate-and-Term" Refinancing

Forbidden: Cash-Out Refinancing / Equity Takeouts

The step-by-step voluntary payoff process

Appraise

Submit

Review

Value

Payout

Step 1: Hire a Certified Appraiser

Step 2: Submit to the Program Administrator

Step 3: CMHC Review and Payout Statement

Step 4: Lawyer Coordinates Payout

Frequently Asked Questions

What happens if the Program Administrator rejects my appraisal?

Can I repay the incentive using my credit card or bank transfer?

If I'm selling my home, do I need to pay for an appraisal?

Can I discharge the FTHBI mortgage myself without a lawyer?

How do I contact FNF Canada directly?

What happens if I miss the 90-day validity window on my Payout Statement?

Does the FTHBI second mortgage have a monthly fee?

Can I refinance my mortgage with a different lender?

How do I find out how much my original FTHBI loan was?

Can I pay off the FTHBI loan using funds gifted by a family member?

Sources & Reference Documents

Frequently asked questions

03What is the process for a voluntary early repayment of the FTHBI?

04Who is FNF Canada and what is their role in FTHBI repayment?

05Can I sell my home without paying back the incentive?

06What happens to the FTHBI if I convert my home into a rental property?

07How long does the voluntary repayment process take to complete?

08Do I need a lawyer to handle a voluntary early repayment?

09What kind of appraiser do I need to hire for a voluntary repayment?

10Can a co-owner buyout another co-owner without triggering repayment?

Where these numbers come from

Next in the guide

Stop paying off someone else's mortgage.

Stop paying off
someone else's mortgage.