Why Do First-time Home Buyer Incentives and Grants Exist?

Buyer incentives and grant programs exist to lower the barrier of entry for home buyers into the market. So you might be wondering, “Why do construction companies and the government care about making it easier for first-time home buyers to buy homes?”

The answer to that is simple: First-time home buyers are a huge driver in the real estate market in most economies.

Here is how the cycle works: Construction companies build homes, and real estate agents make commissions selling those those homes to first-time home buyers.

Those first-time home buyers now become current home owners, and most home owners are reluctant to buy a second home after they buy their first home.

Therefore, in order for construction companies to keep building houses and remain in business, they need new first-time home buyers to be able to afford buying a home and get into the market.

In addition, plenty of current home owners make their decision to sell their current home based on how many fist-time home buyers are looking to and able to afford buying their first home.

If first-time home buyers cannot afford to buy a home, house prices fall and most home owners do not want to sell their properties. This in turn affects real estate agents who receive fewer listings to sell and lower commissions.

So a lot in the real estate market hangs on the ability of first-time home buyers to afford buying a home.

The government of Canada currently provides several incentives and grants which are discussed below for first-time home buyers in Saskatchewan through its National Housing Strategy.

The National Housing Strategy is the largest and most ambitious federal housing program in Canadian history. Over the next decade, it will invest $55+ billion to build stronger communities and help Canadians across the country access a safe, affordable home.

Government of Canada National Housing Strategy, 9/10/2019

We have compiled a list of first-time home buyer grants and incentives that you might find useful.