BREAKING NEWS
First-Time Home Buyer Incentive Disontinued, Deadline Below
The First Time Home Buyer's Incentive is ending March 21, 2024. This means, you will have to have an offer on a home before March 21, 2024 to access this incentive. Also, it may change your existing pre-approval.
The widely utilized First-Time Home Buyer Incentive program, aimed at easing the financial burden on first-time homebuyers, is set to be discontinued. The deadline for new or revised submissions is swiftly approaching, set for midnight ET on March 21, 2024.
Under the new guidelines, all new applications and resubmissions for previously cancelled or declined applications must reach the Program Administrator by the aforementioned deadline. This includes cases where applications were previously rejected, necessitating resubmission before the cutoff date.
Furthermore, applications submitted on or before March 21, 2024, facing declination due to an error, will see the responsibility for rectification placed on the mortgage loan insurer. Any applications resubmitted after this deadline will undergo manual review, with requests for such reviews required to be submitted no later than March 25, 2024, midnight ET.
The Program Administrator assures prompt processing of applications received before the stipulated deadlines, with a clear directive that no new approvals will be granted after March 31, 2024.
The First-Time Home Buyer Incentive, a shared-equity mortgage with the Government of Canada, has been instrumental in assisting qualified first-time homebuyers to reduce their monthly mortgage payments. It offers varying percentages of shared equity depending on the type of property purchased, including newly constructed homes, resale (existing) homes, and new or resale mobile/manufactured homes.
One of the key features of the Incentive is its shared equity component, which involves the government sharing in both the upside and downside of the property value, capped at a maximum gain or loss of 8% per annum.
One of the key features of the Incentive is its shared equity component, which involves the government sharing in both the upside and downside of the property value, capped at a maximum gain or loss of 8% per annum.
By availing the Incentive, borrowers can reduce their down payment requirements, leading to
smaller mortgages and ultimately lower monthly costs. However, it's important to note that repayment of the Incentive is based on the market value of the home at the time of repayment, with specific guidelines outlined for both appreciation and depreciation scenarios.
The repayment period spans 25 years or upon the sale of the property, whichever occurs first, with no pre-payment penalties for borrowers wishing to repay the Incentive in full ahead of schedule.
For further inquiries, individuals are directed to contact FTHBIOps@cmhc-schl.gc.ca.
