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The federal government has discontinued the First-Time Home Buyer Incentive, a much-criticized program aimed at improving housing affordability for new buyers that saw muted uptake in major markets.

Canada Mortgage and Housing Corporation (CMHC), the national housing agency, said in a statement on its website that the program was winding up, with no new or updated submissions to be accepted after midnight ET on March 21.

Applications resubmitted after that date will be subject to a manual review, with review requests to be submitted no later than midnight ET on March 25 and no new approvals to be granted after March 31.

Introduced in 2019, the Incentive was aimed at reducing monthly mortgage payments for qualified first-time buyers through a shared-equity scheme. It offered a contribution of 5% or 10% towards the purchase of a newly constructed home, and 5% of the purchase of a resale existing home or new/resale mobile or manufactured home.

Still, that shared-equity component, which meant the government would also benefit from the potential future sale of a home, proved unpopular with buyers, who would have to repay the Incentive either after 25 years or upon sale.

The program faced challenges from the off. In 2020, federal Conservative MPs Tom Kmiec and Stphanie Kusie slammed its cost and low levels of consumer interest, urging CMHC to topdeo the scheme,  after an annual report showed its uptake lagged far below projections.

Mortgage Professionals Canada (MPC) also criticized the Incentive at its 2022 summit, when vice chair Veronica Love said the scheme was “simply failing” with data showing participation in the program was less than a third of what the government had originally envisaged.

Between its launch in September 2019 and the end of March 2021, the program had seen  LESS THAN 10,000 sucessfull applicants across Canada with Edmonton and Calgary accounting for nearly 2,000 of that total.


Category: Mortgage Tips & Advice (15 posts)

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  • Posted by John C Filice

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  • February 24, 2021 @ 4:51 PM
  • Posted by John C Filice

Why Borrowers May Choose a Private Mortgage

Why Borrowers May Choose a Private Mortgage When most people want to buy a home, they get a list of local banks and mortgage companies to start comparing the available financing options. However, the

  • February 10, 2021 @ 4:02 PM
  • Posted by John C Filice

How to Handle a Mortgage After a Separation or Divorce

Mortgage Life After Separation and Divorce Separation and divorce present many challenges. It's a situation you likely never thought you'd never be in, but now there are personal and financial conseq

  • September 9, 2020 @ 7:53 PM
  • Posted by John C Filice

Reverse Mortgages – Impact on Heirs

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  • June 10, 2020 @ 4:16 PM
  • Posted by John C Filice

When Is Mortgage Refinancing a Bad Idea?

Property owners refinance their homes and commercial properties all the time. As your credit improves and you have built more equity into the property, it may make fiscal sense to refinance when inter

  • April 22, 2020 @ 4:56 PM
  • Posted by John C Filice

5 Smart Ways to Use a Home Equity Line of Credit

For homeowners across the globe, home equity lines of credit (HELOCs) have become a handy way of tapping into the value of their homes. However, when borrowing money against your home, it is always a

  • April 8, 2020 @ 3:41 PM
  • Posted by John C Filice

What should you consider when refinancing your mortgage?

Mortgage rates are at a historic low. If you're thinking about refinancing your mortgage, you could possibly save significant amounts of money over the years. Especially in the first years of owning y

  • February 18, 2020 @ 9:51 PM
  • Posted by John C Filice

Should You Pay Off Your Mortgage Early?

It's a dream to be able to pay off your mortgage early, but is there a downside?  While it sounds like a great idea, there are some factors to consider before doing so.  This article will ex

  • February 14, 2019 @ 1:18 PM
  • Posted by John C Filice

The year higher borrowing costs and stricter mortgage rules hit home

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  • February 14, 2019 @ 12:34 PM
  • Posted by John C Filice

Big-Bank Mortgages Are Comfortable, Popular And The Worst Deal Around

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  • December 24, 2018 @ 11:15 AM
  • Posted by John C Filice

How to Improve Your Chances of Being Approved for a Mortgage

For most first time home buyers, obtaining a mortgage is a crucial part of the purchasing process. However, being approved for a mortgage is often easier said than done. It can be disheartening to f

  • November 28, 2018 @ 12:34 PM
  • Posted by John C Filice

The Pros And Cons Of Reverse Mortgages - A Quick Guide

No matter how carefully you plan, life can put a dent in your retirement funds. A life-altering accident or illness can turn your life upside down. Dipping into your retirement to meet uncovered expen

  • September 27, 2018 @ 10:41 AM
  • Posted by John C Filice

Should You Get a Shorter-Term Mortgage, Make Extra Payments, or Something Else?

When getting a home mortgage, if you can afford higher payments, often the option of a 15-year loan instead of one of 30 years is an option. It can be an enticing idea to know that you'll be free of a

  • November 16, 2016 @ 1:37 PM
  • Posted by John C Filice

4 Strategies That Can Help You Get PreApproved

So, you've decided to take the big step and look into getting what will likely be the biggest loan of your entire life: a mortgage. Applying for a mortgage can be a bit of a nerve-wracking process, es

  • November 2, 2016 @ 1:37 PM
  • Posted by John C Filice

5 easy ways to be mortgage free sooner!

We all know that paying off a mortgage as early as possible makes good financial sense. You’ll save significant interest costs and free up money for RRSPs and other investments, and changing l