First-time homebuyer incentive is discontinued, says federal housing agency

The first-time homebuyer incentive has been discontinued by the Canadian Mortgage and Housing Corporation, the federal agency announced on Thursday.

The deadline for new or resubmitted applications to the program is midnight ET on March 21, 2024, according to the CMHC’s website.

Launched in 2019, the plan was meant to help reduce monthly mortgage payments for first-time buyers by having the government take on partial ownership of a property.

The government offered a loan up to 10 per cent of the purchase price that would go toward a larger down payment and thereby reduce monthly payments.

Homeowners have to repay the incentive after 25 years or when the property is sold, with the amount owing adjusted to reflect how the value of the property has changed.

The program was hampered in part by eligibility issues including limits to household income and the size of a mortgage the buyer could take on.