Housing · Canada
FTHBI is closed: what Canadian first-time buyers should use instead in 2026
Search results still teach the First-Time Home Buyer Incentive as if a 2026 buyer can file. They cannot. CMHC’s program page is a stop sign: the deadline for new submissions was 21 March 2024, midnight EST; no new approvals after 31 March 2024. Existing approved participants keep their rules. A worksheet that assumes a new 5% or 10% shared-equity cheque is fiction.
This page date-stamps the closure and maps the replacement stack we already use on FHSA, HBP, Ontario LTT, and GST/HST new-housing pages.
Disclosure: Mortgage tools and FHSA account offers are offer types. Saving Optimizer may earn a commission if we later add partner links. We do not currently claim issuer, lender, or government partnerships. This is not tax, legal, or brokerage advice.
Key takeaways
- CMHC: new FTHBI submissions ended 21 March 2024, midnight EST. No new approvals after 31 March 2024.
- Shared equity was not a grant. You repaid a slice of future value. That confusion is why old blogs still waste planning time.
- 2026 stack: FHSA ($8,000 / $40,000), HBP ($60,000 RRSP; 2026 first withdrawal → 2031 first repayment year in CRA examples), provincial LTT refunds, and GST/HST new-housing / FTHB rebates.
- Municipal and provincial down-payment pilots expire. Verify the .ca page the week you offer.
- If a 2025 listicle still “explains how to apply for the Incentive,” close the tab.
What the First-Time Home Buyer Incentive was—and application cutoff
FTHBI was a shared-equity mortgage: CMHC typically advanced 5% (resale) or 5–10% (new build) of the purchase price. You shared upside and downside when you sold or after a term of years. It lowered the insured mortgage and the payment. It did not gift you the 5%. New or resubmitted applications stopped 21 March 2024. Approvals were not issued after 31 March 2024. That is the date stamp. There is no 2026 intake.
Why shared-equity math confused many households
People heard “government helps with the down payment” and underwrote a grant. The Incentive was a silent partner. If the house rose $80,000, a 5% share was not “$20,000 forever” — it was 5% of a higher value on the way out, subject to program rules. If the house fell, you shared the loss too. Forums filled with “I owe more than I thought.” That product design is why we do not mourn it as free cash. We replace it with tools you actually control.
Replacement toolkit: FHSA, HBP, LTT rebates, GST/HST new-housing relief
| Tool | 2026 conversation (verify) | What it is not |
|---|---|---|
| FHSA | CRA: $8,000 first-year room, $40,000 lifetime; deductible in / tax-free qualifying out | Not retro room for years you did not open |
| HBP | Up to $60,000 from RRSPs; 2026–2028 first-withdrawal repayment-start relief (2026 → 2031 in CRA examples) | Not a grant — you repay the RRSP |
| LTT / PTT refunds | Ontario first-time max $4,000 (ontario.ca, 10 Feb 2026); Toronto MLTT rebate up to $4,475; B.C. first-time PTT reduction in a published band | Not a down payment |
| GST/HST FTHB rebate | Up to $50,000 of the 5% federal tax on qualifying new homes; agreements on or after 20 Mar 2025 and before 2031 | Not for a typical resale |
These stack in the sense that they are different pipes. They do not stack as four ways to count the same $40,000. The lawyer’s statement and CRA My Account are the sources of truth.
Provincial/municipal down-payment programs to check locally
Cities and provinces run time-limited down-payment assistance, forgivable loans, and tax credits. They grow income caps, price caps, and “funds exhausted” banners. Use the verification-first provincial map — not a 2022 national listicle. Alberta has no provincial land-transfer tax to refund. Québec’s welcome tax is municipal. A closed federal Incentive does not mean your city invented a replacement on the same form.
How to avoid outdated blog posts still promoting FTHBI
- Search “FTHBI CMHC” and read the official page first. If it still says applications are closed, the blog is wrong.
- Ignore any “how to apply” dated 2023 that was never updated.
- If a calculator still has an “Incentive %” field for a 2026 closing, delete that line.
- Ask the broker: “Are you modelling any shared-equity program that still accepts files?” The answer should be no for FTHBI.
Decision tree for 2026 buyers
- Eligible and a first home is a 1–5 year idea? Open and fund the FHSA. Room does not retro-accrue.
- RRSP already large? Map HBP occupancy and repayment. Do not empty the account into a thin-reserve condo you have not diligenced (fee red flags).
- Ontario or Toronto closing? Run net LTT after refunds. Other provinces: their .ca tax page.
- New build? Run GST/HST FTHB + provincial HST paths. Resale? Do not invent a rebate.
- Still short? That is a price, stay-horizon, or roommate conversation — not a closed Incentive.
Date-stamp reminder: verify every program before relying on it
This page was checked 20 Sep 2026. FHSA dollar amounts are design numbers, not a 2026 index. HBP repayment-start relief is tied to first-withdrawal years 2026–2028 on CRA’s page. Ontario LTT figures follow ontario.ca’s 10 Feb 2026 update. GST/HST FTHB follows CRA (Royal Assent 12 Mar 2026; applications open). If you are reading this in 2027, re-open the .ca links. Do not screenshot our table as a filing position.
Sources & date stamps
- CMHC, First-Time Home Buyer Incentive — applications ended 21 Mar 2024, midnight EST; no new approvals after 31 Mar 2024 (used 20 Sep 2026).
- CRA, First Home Savings Account — $8,000 / $40,000 (used 20 Sep 2026).
- CRA, Home Buyers’ Plan — $60,000; 2026–2028 first-withdrawal repayment-start examples.
- CRA, First-time home buyers’ GST/HST rebate — up to $50,000; agreements on or after 20 Mar 2025 and before 2031.
- Ontario.ca, land-transfer-tax refunds for first-time homebuyers — $4,000 max (updated 10 Feb 2026).
Frequently asked questions
Is the CMHC First-Time Home Buyer Incentive still available?
Not for new applicants. CMHC: new submissions ended 21 March 2024, midnight EST. No new approvals after 31 March 2024. Already-approved participants follow their existing paperwork.
What should first-time buyers use instead in 2026?
The usual stack is an FHSA, the Home Buyers’ Plan if you have RRSP room, provincial or municipal land-transfer relief, and — on a qualifying new home — GST/HST first-time and new-housing rebates. None of these is a shared-equity clone.
Was FTHBI a grant?
No. It was shared equity. The government advanced a percentage of the price and shared in the change in value when you repaid. Treating it as free down-payment cash is how households were surprised at sale.
Can I still find FTHBI application forms online?
You may find PDFs and old blog posts. They do not reopen the program. Use CMHC’s closure notice as the source of truth.
Is this tax or brokerage advice?
No. It is a date-stamped map. Confirm CRA, CMHC, and provincial pages before you underwrite a number.