Discontinuation of the First-time Homebuyer Incentive
Register Now03.11.24
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Buying
Big news in the world of Canadian real estate! The Canadian Mortgage and Housing Corporation just made a major announcement: they’re ending the first-time homebuyer incentive that’s been around since 2019. It’s a pretty significant change that affects a lot of people hoping to buy their first home.
So, what’s happening? The Canadian Mortgage and Housing Corporation has set a deadline for the final batch of new or resubmitted applications. If you’re interested in taking advantage of this program, you have time until midnight ET on March 21, 2024, to get your paperwork sorted.
The first-time homebuyer incentive was meant to make monthly mortgage payments a bit more manageable for first-time buyers. How? By giving them a loan of up to 10% of the purchase price, which meant they could put down a bigger down payment and have lower monthly payments down the line.
But, it wasn’t all smooth sailing. One of the big problems was that a lot of people weren’t eligible for the program because of things like their household income or the size of their mortgage.
Plus, the idea of sharing ownership of your home with the government didn’t sit well with a lot of potential buyers. Knowing that they wouldn’t get to keep all the profits if their property’s value went up, turned a lot of people off.
As the first-time homebuyer incentive comes to an end, it’s clear that while it had good intentions, it just didn’t work out as planned. Maybe it’s time to rethink how the government can help people buy their first home and come up with a simpler solution.
