April 13th, 2024

CMHC says first-time homebuyer incentive discontinued

By The Canadian Press on March 1, 2024.

Canada's housing agency says the first-time home buyer incentive has been discontinued. A real estate sign is displayed in front of a house in the Riverdale area of Toronto on Wednesday, September 29, 2021. THE CANADIAN PRESS/Evan Buhler.

OTTAWA – Canada’s housing agency says it is ending the first-time homebuyer incentive program.

Canada Mortgage and Housing Corp. says the deadline for new or updated submissions to the program is midnight eastern time on March 21.

The plan was meant to help reduce monthly mortgage payments for first-time buyers by having the government take on partial ownership of a property.

The government offered a loan up to 10 per cent of the purchase price that would go toward a larger down payment and thereby reduce monthly payments.

Homeowners have to repay the incentive after 25 years or when the property is sold, with the amount owing adjusted to reflect how the value of the property has changed.

The program was hampered in part by eligibility issues including limits to household income and the size of a mortgage the buyer could take on.

This report by The Canadian Press was first published March 1, 2024.

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