FHP Frequently Asked Questions

Q: Who is eligible?
A: Applicants must be first-time homebuyers from any region of the province who meet the First-time Homebuyers Program (FHP) requirements (including income level) and have been pre-approved for a mortgage by a recognized financial institution.
Q: Can I qualify for assistance if I have a guarantor?
A: Yes, guarantors are permitted as they are not listed on the title of the home, only on the mortgage. Therefore, a guarantor is not required to be a first-time homebuyer.
Q: Can I have a co-applicant?
A: Yes, if they are a first-time homebuyer. A co-applicant must also be a first-time homebuyer as they are listed on the title of the home as well as the mortgage. Co-applicants must meet program eligibility criteria.
Q: How will NLHC verify an applicant is a first-time homebuyer?
A: Applicants must sign a declaration that all application information is true, and provide an affidavit affirming they are indeed a first-time homebuyer.
Q: What do I need to include with my application?
A: An eligible submission includes a fully completed application, a signed CRA Income Consent Form for Programs, a sworn affidavit and a personalized letter of pre-approved mortgage confirmation from a recognized financial institution.
Q: Can I submit my application now and my pre-approval later?
A: No. Only completed applications will be assessed for eligibility. Incomplete applications will be returned.
Q: Will an email from my lender confirming pre-approval suffice?
A: No. Pre-approval confirmation shall be in the form of a letter with an authorized signature.
Q: How do I apply?
A: Options:

  • Fillable or printable online form here
  • Apply online here
  • Fax: (709) 724-3149
  • Email: fhp@nlhc.nl.ca
  • Mail: Program Delivery Department
    Newfoundland and Labrador Housing Corporation
    2 Canada Drive
    P.O. Box 220
    St. John’s, NL A1C 5J2

Q: How many people will be assisted?
A: Approximately 150 first-time homebuyers
Q: What is the deadline for application submission?
A: There is no submission deadline at this time. However, presently the program is expected to assist approximately 150 applicants.
Q: What assistance is offered?
A: Eligible household assistance includes a grant of 50% of the legal closing costs up to a maximum of $1,500, plus a repayable loan up to 5% of the purchase price of a new or existing home, to a maximum purchase price as per program guidelines.
Q: How is the interest on the repayable loan amortized?
A: The loan is interest free for the first 5-years. Payments begin following the interest free period and are amortized over 15-years for a total period of 20-years. However, funding recipients can begin repayment at an earlier date if they choose by contacting NLHC.
Q: What are the First-Time Homebuyers interest rates?
A: Interest rates will vary, depending on when repayment begins; however, it will not exceed the prime rate minus one percent.
Q: What are the income limits?
A: Applicants must have a total household income of less than $85,000 to qualify. Total household incomes up to $95,000 are also eligible based on a sliding scale of reduced assistance.
Q: What are the maximum purchase prices allowable to receive repayable loan assistance?
A: Geographic Area:

  • $350,000 (St. John’s [Census Metro Area] and Labrador);
  • $300,000 in regional centers (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]).

Q: How much assistance is provided?
A: 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. See the chart below:


Maximum Loan Amount*
Maximum Loan Amount
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

Q: Is there any flexibility with the Program regarding maximum purchase price?
A: 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 centers. 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.
Q: What else should you know about an FHP Loan?
A: 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 10 business days to process prior to closing to assess and process the request.
Q: Can I select my own lender?
A: 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.
Q: Can FHP funding be stacked with other programs &/or an applicants own downpayment?
A: There is no provisions against stacking the FHP with other Federal programs or with an applicants’ down payment.
Q: How will I know if I’m a successful applicant?
A: Successful applicants will be notified in writing of their Conditional Approval to access program funding, and related parameters.
Q: If I am a successful applicant, when can I expect to receive a Conditional Approval letter?
A: Successful applicants will be notified as soon as possible.
Q: How will I know how much I can spend?
A: Conditionally approved applicants will be notified in writing and letters will include specific information such as geographic area, maximum purchase price, maximum assistance, etc.
Q: How long will I have to purchase a home?
A: Funding is conditionally approved for a period of 90-days from the date of the Conditional Approval letter.
Q: Can applicants still access this program if they are also paying an additional amount on the down payment on their own?
A: Yes. Applicants who are paying an additional down payment amount are eligible to apply.