The federal government has announced it will be discontinuing its First-Time Home Buyer Incentive (FTHBI) program as of March 21.
Introduced in 2019, the shared-equity program is administered by the Canada Mortgage and Housing Corporation (CMHC) and involves a government contribution of 5% to 10% towards the down payment for first-time homebuyers in exchange for a proportional share in the future increase or decrease in the home’s value.
Buyers aren’t required to make any monthly payments, but the loan has to be repaid—at current fair market valuation determined by CMHC using an independent appraisal—either after 25 years or upon the sale of the property.
Since its inception, the program has faced criticism and struggled with a participation rate far below initial government estimates.
When it was unveiled, the government earmarked…
