# Shared Equity Mortgage Programs for First-Time Buyers in Canada — What Remains After FTHBI

> The federal FTHBI ended March 2024. Here is what provincial shared equity programs remain, how they work mechanically, and how salaried first-time buyers qualify in 2025-2026.

Category: Purchase
Last verified: 2026-04-20
Source: https://ratellow.com/scenarios/shared-equity-government-program-mortgage-canada

## Who this is for
Salaried first-time buyers in Canada who heard about government shared equity programs and need to understand what is still available after the federal First-Time Home Buyer Incentive was wound down in early 2024.

## Summary
The federal First-Time Home Buyer Incentive (FTHBI) closed to new applications on March 21, 2024, and the program wound down fully by March 31, 2024 — leaving no active federal shared equity mortgage product in Canada as of 2025. Provincial programs, most notably BC's Home Buyer Assistance Account and the legacy BC HOME Partnership (now closed), represent the remaining government-adjacent equity-sharing landscape, though most provinces have shifted toward rebate and land-transfer-tax relief rather than equity co-investment. Salaried first-time buyers should understand the mechanics of what existed, what remains provincially, and how conventional insured financing with the December 2024 $1.5M cap expansion now compares.

## Worked example
A salaried couple in Metro Vancouver earns $130,000 combined, has $65,000 saved, and is targeting a $750,000 property. With no active federal shared equity program, they are evaluating BC's provincial landscape alongside standard CMHC-insured financing. At 5% down on $750,000 they would owe a 4.00% CMHC premium ($28,500) on the insured portion; at 10% down the premium drops to 3.10% ($20,925).

- FTHBI status (federal): Closed March 31, 2024 — no new applications
- CMHC insured cap (post Dec 2024): $1,500,000 purchase price
- CMHC premium at 5% down on $750k: 4.00% × $712,500 = $28,500
- CMHC premium at 10% down on $750k: 3.10% × $675,000 = $20,925
- Qualifying rate (stress test, 2026): Contract rate + 2%, floor 5.25%

## Framework
### The FTHBI — mechanics and why it ended
The federal First-Time Home Buyer Incentive provided 5% (existing homes) or 5-10% (new construction) of the purchase price as an interest-free shared equity loan from CMHC. Repayment was triggered at sale or after 25 years, with CMHC sharing proportionally in any appreciation or depreciation. The program was structurally constrained: the income cap of $120,000 (or $150,000 in high-cost markets) combined with a purchase-price ceiling of 4× qualifying income meant the maximum eligible property in Toronto or Vancouver was roughly $480,000-$600,000 — well below median prices. Uptake was low relative to program cost, and the federal government announced closure in November 2023, with the final application deadline of March 21, 2024. No replacement federal shared equity product has been announced as of April 2026.

### What remains provincially — BC as the primary example
British Columbia operated the BC HOME Partnership program (2017-2020), a matched shared equity loan of up to 5% of purchase price, which also closed to new applicants. As of 2025-2026, BC's primary first-time buyer support is the **BC Home Owner Mortgage and Equity Partnership** successor programs and the **Property Transfer Tax exemption** for first-time buyers on homes under $835,000 (full exemption) to $860,000 (partial). BC Housing's affordable homeownership programs (e.g., the Community Land Trust model) provide shared equity in specific developments but are not open-market products — eligibility is project-specific and income-tested. **Ontario** has no provincial shared equity mortgage program; its support is limited to the Land Transfer Tax rebate (up to $4,000) and the First Home Savings Account (FHSA). **Alberta, Saskatchewan, Manitoba, and Atlantic provinces** similarly rely on rebate and savings-account mechanisms rather than equity co-investment. Buyers should verify current program status directly with provincial housing authorities, as program parameters change annually.

### The First Home Savings Account — the functional replacement
The FHSA (launched April 2023) is the federal government's primary first-time buyer tool post-FTHBI. It allows up to **$8,000 per year** in tax-deductible contributions, with a lifetime cap of $40,000, and withdrawals for a qualifying first home are tax-free. Combined with the Home Buyers' Plan (HBP) RRSP withdrawal of up to $60,000 per person (increased from $35,000 in Budget 2024, effective April 16, 2024), a couple can access up to $200,000 in tax-sheltered savings for a down payment. This is not shared equity — the government does not co-own the property — but it is the primary federal affordability mechanism replacing the FTHBI. Salaried buyers should maximize FHSA contributions before exploring any alternative structures.

### CMHC-insured financing post December 2024 reforms
The December 15, 2024 federal mortgage reforms expanded the insured mortgage cap from $1,000,000 to $1,500,000 and restored 30-year amortizations for insured mortgages on new construction and for all first-time buyers. These changes materially improve affordability for salaried first-time buyers in high-cost markets without requiring a government equity partner. **At 5% down on a $900,000 property** (previously uninsurable), a buyer now qualifies for CMHC insurance with a 4.00% premium. The 30-year amortization option reduces monthly payments by approximately 9-11% versus 25 years on the same principal, improving GDS ratios. The stress test remains: qualifying rate is the greater of the contract rate plus 200 bps or 5.25%. At a 5.0% 5-year fixed contract rate, the qualifying rate is 7.0%.

### Community land trust and non-profit shared equity — the remaining equity-share model
The only active shared equity structures in Canada as of 2026 are operated by non-profit community land trusts (CLTs) and municipal affordable housing programs. In these models, the CLT retains ownership of the land and sells the structure at below-market price; the buyer's resale price is capped by a formula that limits appreciation to preserve long-term affordability. **Vancouver's Community Land Trust** and **Toronto Community Housing** operate variants of this model. Mortgage financing on CLT properties is possible but lender-specific — not all prime lenders will underwrite a leasehold or restricted-resale property. CMHC insures CLT properties under specific conditions. Buyers interested in this route need a broker experienced with leasehold financing and should confirm lender acceptance before making an offer.

### How salaried first-time buyers should sequence their options in 2026
Given the absence of a federal shared equity product, the optimal sequence for a salaried first-time buyer is: **1.** Maximize FHSA ($8,000/year, up to $40,000 lifetime) and HBP RRSP withdrawal ($60,000/person after the April 2024 cap increase). **2.** Apply the First-Time Home Buyers' Tax Credit ($10,000 federal, $1,500 tax value). **3.** Claim applicable provincial land transfer tax rebates (Ontario up to $4,000; BC PTT exemption up to $835,000). **4.** Evaluate CMHC-insured financing with 30-year amortization if purchasing new construction or as a first-time buyer. **5.** If targeting a CLT or affordable homeownership project, engage a broker with leasehold experience. There is no federal equity co-investment shortcut available — the program closed.

## Key considerations
- The FTHBI's closure means any broker or lender still referencing it as an active option is working from outdated information — verify program status directly at canada.ca before acting on any advice.
- Provincial programs change annually with budget cycles. BC's Property Transfer Tax exemption thresholds, for example, were last adjusted in 2024; confirm current thresholds with BC's Ministry of Finance before relying on them in purchase planning.
- Community land trust properties carry resale restrictions that can limit your equity accumulation and your ability to refinance — model the long-term equity outcome against a standard purchase before committing.
- The FHSA and HBP can be combined in the same purchase, but FHSA withdrawals must be for a qualifying first home and the account must have been open for at least one calendar year before withdrawal.
- The December 2024 insured cap increase to $1.5M does not eliminate the stress test — a buyer targeting a $1.4M property with 5% down still qualifies at contract rate plus 200 bps, which at current rates means a 7.0% qualifying rate.

## Common mistakes
- Assuming the FTHBI is still active and building a purchase plan around it — the program closed March 31, 2024, and any application submitted after March 21, 2024 was rejected, leaving buyers without expected funds at closing.
- Conflating the FHSA (a savings account) with a shared equity program — the FHSA reduces your down payment cost but does not reduce your mortgage principal or involve government co-ownership.
- Applying for a mortgage on a CLT property without confirming lender acceptance first — several prime lenders decline leasehold or resale-restricted properties, which can collapse a purchase after an accepted offer.
- Ignoring provincial land transfer tax rebates, which are automatic in some provinces but require application in others — missing the Ontario LTT rebate costs a first-time buyer up to $4,000 in cash at closing.
- Choosing a 25-year amortization when a 30-year insured amortization is available as a first-time buyer — the longer amortization improves monthly cash flow and GDS ratio, and can be prepaid aggressively without penalty up to the lender's annual prepayment privilege.

## Action steps
1. Confirm the current status of any provincial program you have been told about by visiting the relevant provincial housing authority website directly — do not rely on third-party summaries that may be outdated.
2. Open an FHSA immediately if you have not already; the one-calendar-year seasoning requirement means every month of delay costs you a year of withdrawal eligibility.
3. Calculate your combined FHSA plus HBP withdrawal capacity to determine your realistic down payment ceiling before setting a purchase price target.
4. If you are in BC and targeting a property under $835,000, confirm your eligibility for the Property Transfer Tax first-time buyer exemption with a BC lawyer or notary before closing.
5. Engage a broker who has funded at least one CLT or leasehold property if you are pursuing a community land trust unit — lender panel access and familiarity with restricted-resale underwriting is non-trivial.
6. Run a side-by-side comparison of 25-year versus 30-year amortization on your target purchase price using current CMHC premium tiers — the premium is identical, but the monthly payment and GDS ratio differ materially.

## Sources
- First-Time Home Buyer Incentive — Program Information — https://www.cmhc-schl.gc.ca/consumers/home-buying/first-time-home-buyer-incentive
- First Home Savings Account (FHSA) — https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
- Guideline B-20 — Residential Mortgage Underwriting Practices and Procedures — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/final-revised-guideline-b-20-residential-mortgage-underwriting-practices-procedures
- Housing — Budget 2024 Measures — https://www.canada.ca/en/department-finance/news/2024/04/budget-2024-fairness-for-every-generation.html