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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.

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Category: Home Ownership (9 posts)

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  • Posted by John C Filice

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  • Posted by John C Filice

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Homeowners are often excited about home renovations and updates. Some property owners also use that opportunity to fulfill their wish lists, such as adding a master bedroom or hardwood flooring. Wit

  • July 15, 2020 @ 5:48 PM
  • Posted by John C Filice

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Owning a home is one of the most valuable investments you can make. While good living spaces should be as comfortable as possible, with time they should also be able to increase their ROI. That's why

  • October 23, 2019 @ 4:10 PM
  • Posted by John C Filice

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  • October 9, 2019 @ 3:45 PM
  • Posted by John C Filice

When is the Best Time of Year to Buy a Home?

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  • August 28, 2019 @ 12:27 PM
  • Posted by John C Filice

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  • August 14, 2019 @ 1:38 PM
  • Posted by John C Filice

10 Benefits of Buying a Newly Constructed House

There are two options available when seeking a new home for your family. You can purchase a resale (meaning an older home that has already been lived in) or a new construction. While each choice pro

  • February 13, 2019 @ 12:14 PM
  • Posted by John C Filice

7 Reasons to Start House-Hunting in the Winter

In most parts of the country, spring and summer are the peak periods for the property market. If you're planning to buy a home, it's traditional to start looking for property in April or May, with the

  • January 9, 2019 @ 1:58 PM
  • Posted by John C Filice

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Purchasing your first home is the dream of a lifetime and a massive investment toward your future. The process is full of hopes and aspirations but is also a huge commitment to take on. For those who