First-time Homebuyers Program (FHP) – 2024

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Who is eligible?

  • Applicants must be first-time homebuyers from any region of the province who meet the First-time Homebuyers Program (FHP) requirements and have been pre-approved for a mortgage by a recognized financial institution.
  • The program will provide eligible households a grant of 50% of the legal closing costs up to a maximum of $1,500, plus a repayable loan up to five percent of the purchase price of a new or existing home, to a maximum purchase price of $350,000 (St. John’s [Census Metro Area] and Labrador); $300,000 in regional centres (Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville and all communities within a 30 km radius); $250,000 (in the remainder of the Province [Rural]).
  • The amount of the loan will be based on a sliding scale that takes into consideration the applicant’s household income level and the cost of the home being purchased.
  • All mortgagors must be first-time home buyers.
  • Applicants are permitted to have a guarantor on their FHP Mortgage.

What are the income limits?

  • Applicants must have a total household income of less than $85,000 to qualify for the full loan.
  • Total household incomes up to $95,000 are also eligible based on a sliding scale of assistance.

How much Assistance can you receive?

  • Grants will be available for 50% of the legal closing costs associated with your purchase of your property up to a maximum of $1,500. (The grant is dependent upon receipt of the loan.)
  • Loan amounts are based on the maximum purchase price which are subject to maximum purchase prices established by the program:
    • $350,000 (St. John’s [Census Metro Area] and Labrador);
    • $300,000 in regional centres (Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville and all communities within a 30 km radius); and
    • $250,000 (in the remainder of the Province [Rural]).
  • For example, in St. John’s and Labrador where housing prices are highest, the maximum assistance provided to applicants with a household income of $85,000 will be $19,000 (loan of $17,500 plus grant of $1,500), while the maximum assistance for applicants in the same region with a household income of $95,000 will be $14,000 (loan of $12,500 plus grant of $1,500).
  • Homeowners with incomes between $85,000 and $95,000 are eligible for assistance, however the loan amount they can receive is reduced on a sliding scale as per the chart below:

 

SLIDING SCALE OF ASSISTANCE

 

INCOME
LEVEL		 ST. JOHN’S AND
LABRADOR
Maximum Loan Amount*		 REGIONAL
CENTRES
Maximum Loan Amount		 RURAL
NEWFOUNDLAND
Maximum Loan Amount
<$85,000 $17,500 $15,000 $12,500
$86,000 $17,000 $14,500 $12,000
$87,000 $16,500 $14,000 $11,500
$88,000 $16,000 $13,500 $11,000
$89,000 $15,500 $13,000 $10,500
$90,000 $15,000 $12,500 $10,000
$91,000 $14,500 $12,000 $9,500
$92,000 $14,000 $11,500 $9,000
$93,000 $13,500 $11,000 $8,500
$94,000 $13,000 $10,500 $8,000
$95,000 $12,500 $10,000 $7,500

* Maximum loan amounts are based on the maximum 5% loan available, subject to maximum purchase prices ($350,000 in St. John’s [Census Metropolitan area] and Labrador; $300,000 in the five regional centres of Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville and all communities within a 30km radius; and $250,000 in the rest of Newfoundland and Labrador [Rural]).

Is there any flexibility with the Program regarding maximum purchase price?

  • Yes, the FHP pilot also includes a Variance Policy to allow, upon approval, the purchase of homes at prices of up to ten per cent above established maximums within the policy for St. John’s CMA, Labrador and regional centres.
  • However, the maximum assistance available to clients who purchase homes within the Variance Policy is capped at 5% of the maximum purchase price for their region. Clients will be responsible for providing any funding above this assistance that is required to meet the 5% requirement for a down payment (see examples below).

What are the First-Time Homebuyers interest rates?

  • Interest rates will vary, depending on when the client decides to start repaying the down payment loan; however, it will not exceed the prime lending rate minus one percent.

What else should you know about a FHP Loan?

  • Successful applicants would not be required to begin paying back this loan for five years after the purchase of a home.
  • Clients may choose to begin loan repayment earlier if they have the financial ability.
  • This program is not available to homes that have already been purchased.
  • Applications submitted with a purchase and sale agreement in place must provide 15 business days to process prior to closing to assess and process the request.

Can I select my own lender?

  • Yes, as long as the lender is an accredited lender with competitive mortgage interest rates, and is willing to accept the down payment loan as an eligible down payment source.
EXAMPLE 1 – Within Established Income Level and Established Home Value (Rural):

  • Applicant Income = $57,000
  • Home to be purchased: $175,000 home in the community of Wesleyville
  • Legal closing costs = $2,500
  • Required down payment: $8,750 (5% of purchase price of $175,000)
  • Assistance = $10,000:
    •  Loan Amount = $8,750 (5% of purchase price of $175,000)
    • Grant Amount = $1,250 (50% of legal cost of $2,500)
  • Additional down payment funds required = $0
  • Additional legal costs = $1,250
EXAMPLE 2 – Within Established Income Level, Home Above Maximum Purchase Price (St. John’s Metro):

  • Applicant Income = $70,000
  • Home to be purchased: $375,000 home in the city of Mount Pearl
  • Legal closing costs = $4,750
  • Required down payment: $18,750 (5% of $375,000)
  • Assistance = $19,000:
    •  Loan Amount = $17,500 (Variance Policy to allow 5% of the maximum purchase price of $350,000)
    • Grant Amount = $1,500 (lesser of 50% legal costs or $1,500)
  • Additional down payment funds required = $1,250
  • Additional legal costs = $3,250
EXAMPLE 3 – Exceeds Established Income Level, Home Above Maximum Purchase Price (St. John’s Metro):

  • Applicant Income = $90,000
  • Home to be purchased: $375,000 home in the City of Mount Pearl
  • Legal closing costs = $4,750
  • Required down payment: $18,750 (5% of $375,000)
  • Assistance = $16,500:
    • Loan Amount = $15,000 (Maximum loan of $17,500, less $2,500 ($500 for each $1000 over income limit)
    • Grant Amount = $1,500 (lesser of 50% legal costs or $1,500)
  • Additional funds required = $3,750
  • Additional legal costs = $3,250
EXAMPLE 4 – Exceeds Established Income Level, Home Within Established Purchase Price (Regional Centre):

  • Applicant Income = $95,000
  • Home to be purchased: $300,000 home in the community of Clarenville
  • Leal closing costs = $4,000
  • Required down payment: $15,000 (5% of $300,000)
  • Assistance = $11,500:
    • Loan Amount $10,000 (Maximum Loan of $15,000, less $5,000 ($500 for each $1000 over income limit)
    • Grant Amount = $1,500 (lesser of 50% legal costs or $1,500)
  • Additional funds required = $5,000
  • Additional legal costs = $2,500

 

Application Form:

To apply online, or print an application, see below:

FHP Apply Online FHP PDF PDF

Please see our Frequently Asked Questions.