CMHC’s First-Time Home Buyer Incentive Off to a Slow Start
2020-02-05 | 10:57:45
CMHC’s First-Time Home Buyer Incentive Off to a Slow Start
Four months after its official launch, CMHC’s First-Time Home Buyer Incentive had funded just 4% of its three-year goal, according to new data provided by the agency.
From the time the down payment assistance program launched on Sept. 2 to Dec. 9, CMHC received just 3,252 applications from across Canada, 2,730 of which were approved. That translated into total funding of $51.3 million—well off pace of the agency’s three-year target of $1.25 billion.
Under the program, the government will provide first-time buyers with an interest-free down payment loan of up to 5% for resale purchases, and 10% if the property is a new build. The CMHC then participates in any rise or fall in value of the home, and the loan must be repaid either when the house is sold or within 25 years.
Interest in the program was highest in Quebec, where 1,300 applications were received. Comparatively, just 436 Ontarians applied, according to statistics that were tabled in Parliament last week.
Here’s a look at the breakdown of applications from some of the major housing markets across Canada:
- Greater Toronto Area: 148
- Vancouver: 45
- Edmonton: 447
- Calgary: 260
- Winnipeg: 144
- Montreal 654
- Halifax: 64
- New Brunswick: 60
- PEI: 12
CMHC head Evan Siddall defended the results via Twitter on Friday:
“In addition to CMHC’s challenges in estimating demand for the FTHBI, uneven lender support is a complicating factor,” he tweeted on Friday. “It may also be evidence that there is less unsatisfied FTHBI demand due to the stress test than people claim. People can always buy less expensive homes.
