First-Time Home Buyers Incentive to End: What to Know
After five years, the Canada Mortgage and Housing Corporation, the country’s main administrator of the National Housing Act, rolls the curtain to the First-Time Home Buyers Incentive Program. What does this mean for Canadian home buyers? Moreover, what will happen to recent applications?
Let’s look at some important details in this article.
What is the First-Time Home Buyers Incentive?
Introduced in September 2019, the First-Time Home Buyers Incentive Program aims to help Canadians buy their first home. Based on a shared-equity setup, qualified applicants can get a portion of the property’s down payment amount which the borrower will pay back after a certain time.
FAQs About the Upcoming Closure of the First-Time Home Buyers Incentive?
Q: When is the final date for submissions?
A: According to the CMHC, the Program Administrator needs to receive applications by midnight ET of March 21, 2024. This includes new submissions or resubmissions of applications previously declined or canceled.
Q: What if my application was resubmitted after March 21?
A: Any resubmitted application sent after the deadline will go through a manual review, with manual review requests accepted until midnight of March 25, 2024.
Q: What happens to my application after the due date?
A: Per CMHC, no more new approvals will be granted after March 31, 2024.
Q: My application was approved but received the confirmation after the due date. What happens?
A: No worries, as your application will be further processed by the Program Administrator as normal.
Q: Why was the program discontinued?
A: While no direct reason was provided, many critics of the program cited several factors. Some reasons why the program had limited attractiveness include income limits and shared equity terms.
Home Acquisition Alternatives for First-Time Home Buyers
Although the FTHBI program is drawing to a close, it doesn’t mean the end for those looking to own their first home. Ijara CDC offers several home acquisition alternatives to help individuals secure a property the riba-free way. Get in touch with our experts to learn more about our numerous programs today.
