Canada Mortgage and Housing Corporation Ends First-Time Homebuyer Incentive Program

Canada Mortgage and Housing Corporation (CMHC) has officially announced the discontinuation of the First-Time Home Buyer Incentive program. The deadline for new or updated submissions to the program is set for midnight eastern time on March 21.

According to a CMHC spokesperson, the FTHBI program, with a budget of up to $1.25 billion, had reached about $408.92 million in utilization. Initially aimed at assisting up to 100,000 homebuyers, the program saw around 22,826 participants.

Reacting to the news, industry professionals like Daniel Vyner and James Laird noted that while the program had good intentions, it faced criticism for its restrictions, especially concerning income levels and property values, particularly in major cities like Toronto, Vancouver, and Victoria.

Penelope Graham from Ratehub.ca mentioned that the shared equity nature of the program, where the government invested in the home equity with the buyer, created practical challenges for many buyers.

The program’s requirements, such as income thresholds and property value caps, made it less appealing to potential homebuyers, especially those eyeing properties in Canada’s larger real estate markets.

NerdWallet Canada’s Clay Jarvis expressed hope that despite the program’s closure, the government remains committed to exploring innovative solutions to make homeownership more accessible for first-time buyers, acknowledging the ongoing challenges in the real estate market.