The program, which was introduced back in 2019, was created to help prospective first-time homebuyers enter the market with more manageable down payments. The program also includes incentives for Canadians who already own a home, allowing them to access up to 10% of their home’s value from CMHC in an effort to become mortgage free sooner.
Recently, CMHC President and CEO Evan Siddall defended the FTHBI program. He noted that there are a variety of benefits to the program, including helping more Canadians become home owners for the very first time as well as reducing the amount of time it takes to pay off a mortgage. It is also beneficial for the economy as a whole, as it helps stimulate housing demand and in turn, helps to increase property values.
However, some have questioned whether the program had gone too far in its attempts to make mortgages more affordable. In response, Siddall argued that measures have been taken to ensure that the FTHBI remains an appropriate balance between affordability and risk. He noted that strict criteria must be met in order to qualify for the program, and that CMHC will continually monitor the program and its effects to make sure it is operating appropriately.
Overall, the CMHC’s First Time Homebuyer Incentive program is seen as beneficial for prospective first-time homebuyers as well as those who already own a home. The program works to make mortgages more accessible by providing smaller down payments, offering additional incentives to existing homeowners to help them become more mortgage free sooner, and stimulating the housing demand in Canada. However, there have been questions raised as to whether the program has gone too far in its attempts to increase affordability, and CMHC has taken steps to ensure that the FTHBI remains an appropriate balance between affordability and risk. Ultimately, CMHC will continually monitor the program in order to make sure it is working effectively for the benefit of Canadians.
This article was contributed on Jun 25, 2023
