First-time homebuyer incentive program ending, CMHC says

Canada’s housing agency says it is ending the first-time homebuyer incentive program.

Canada Mortgage and Housing Corp. says the deadline for new or updated submissions to the program is midnight eastern time on March 21.

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.