First-Time Home Buyer Incentive of the Government of Canada and broker’s role

Are you thinking of buying and financing a first new or used residential property? Since September 2, 2019, a new program may help you reduce your mortgage payments without additional outlays for the down payment if you meet certain criteria –this is the First-Time Home Buyer Incentive. The Incentive’s value is 5% or 10% of the property value, depending on whether it is a new or used property. 

To see if you qualify and learn about the terms and conditions of this insurable loans program, CMHC offers several resources, including:


Attention: before enlisting the services of a particular notary, check if additional fees will apply for closing two mortgage loans on the property. In addition, if the incentive is a main prerequisite for your purchase, check with your financial institution or mortgage broker.

What are my broker’s duties?

Are you interested in the Government Incentive? Under his duty to inform, your broker must inform you about the existence of this program and its consequences. The real estate broker is subject to ethical rules set by the Real Estate Brokerage Act and applied by the OACIQ for your protection.

Here is an overview of the work that will be carried out by your broker:

  • He will make sure that the signing date of the deed of sale will be on or after November 1, 2019 (in accordance with the Incentive’s requirements);
  • He will inform you that the Incentive is an interest-free second mortgage on the property, which is refundable and calculated based on the property market value upon resale.

Your broker is acting on behalf of an agency? Its executive officer is responsible for ensuring that agency brokers meet these requirements. He is a resource person to contact, if necessary.


An agent from the information centre Info OACIQ will be glad to answer them.

Last updated on: June 11, 2020
Article number: 207025