Federal housing agency announces discontinuation of first-time homebuyer incentive.

Movie DetailerPolitics Federal housing agency announces discontinuation of first-time homebuyer incentive.
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The Canada Mortgage and Housing Corporation (CMHC) has announced the discontinuation of the first-time homebuyer incentive. The deadline for new or resubmitted applications to the program is midnight ET on March 21, 2024. Launched in 2019, this plan aimed to reduce monthly mortgage payments for first-time buyers by having the government take on partial ownership of a property. It offered a loan up to 10% of the purchase price to boost the down payment and reduce monthly payments. Participants must repay the incentive after 25 years or upon property sale, with adjustments made for changes in property value. Eligibility issues, such as income limits and mortgage size restrictions, hindered the program. Some potential applicants, like Apoorva Pande from Toronto, were disqualified due to high combined income exceeding $150,000. Challenges with limited housing supply also impacted the home-buying experience. While the program drew interest, many found its criteria too restrictive, leading them to seek financing elsewhere. Mortgage broker Leah Zlatkin considered the program administratively burdensome, with low utilization raising questions about its effectiveness.

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