😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Canada's Federal housing agency discontinues First-Time Home Buyer Incentive

Published 2024-03-01, 12:38 p/m
© Reuters.

Investing.com – Would-be Canadian homebuyers will shortly have one less incentive program to help with buying a home. 

​​Canada's federal housing agency, Canada Mortgage and Housing Corp. has announced that it will be discontinuing its first-time homebuyer incentive program as of midnight ET on March 21, 2024. 

Any new or updated submissions to the program must be submitted by that time. 

Launched in 2019, the plan was designed to help reduce monthly mortgage payments for first-time home owners. 

With the program, the government would offer a loan up to 10% of the purchase price towards a down payment , thereby reducing monthly mortgage payments. 

Homeowners would have to repay the incentive when the property was sold, and the amount owing to the government adjusted to reflect the changed value of the property. 

The shared-equity component of the program, which saw the government benefiting from a future sale, faced much criticism from buyers. 

The program was also plagued by eligibility issues, including limits on mortgage size and household incomes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.