The Canada Mortgage and Housing Corporation (CMHC) has announced that the First-Time Home Buyer Incentive (FTHBI) will end earlier than planned. The program will be discontinued as of 9:00 p.m. (PT) on March 21, 2024.
What You Need to Know
- The deadline for new or resubmitted applications is 9:00 p.m. (PT) on March 21.
- If an application submitted before the deadline is declined due to an error, the mortgage insurer will rectify the issue and resubmit the application.
- Applications resubmitted after the deadline will be subject to a manual review. Requests for reviews must be submitted by 9:00 p.m. (PT) on March 25.
- After March 31, no new approvals will be granted.
The program’s goal has been to make home ownership more accessible to qualified first-time home buyers by offering reduced monthly mortgage payments in exchange for the government sharing in the home’s equity.
FTHBI was launched in 2019 as part of the National Housing Strategy with a $1.25-billion commitment. However, five years later, only 22,827 applications have been approved and CMHC has disbursed only $409 million. In British Columbia, there are a total of 859 approved applications as of the end of the third quarter of 2023.
The Canadian Real Estate Association (CREA) believes that the low participation in the program was due to restrictive criteria, such as limits to household income and the maximum mortgage size that the buyer could take on. Moreover, buyers were hesitant to enter into a partial co-ownership agreement with the government.
CREA ‘s position is to continue advocating for effective programs that can help first-time home buyers enter the market. CREA also aims to ensure that funds previously allocated to the FTHBI will be redirected towards other housing initiatives, particularly those that may result in increased supply.
For more information on the FTHBI, please contact CMHC at FTHBIOps@cmhc-schl.gc.ca or visit their website.