First-time homebuyer incentive discontinued: CMHC

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Canada's housing agency says it is ending the first-time homebuyer incentive program. Canada Mortgage and Housing Corp. says the deadline for new or updated submissions to the program is midnight eastern time on March 21.

The plan was meant to help reduce monthly mortgage payments for first-time buyers by having the government take on partial ownership of a property.The government offered a loan up to 10 per cent of the purchase price that would go toward a larger down payment and thereby reduce monthly payments.

Total borrower income couldn't be higher than $120,000, or $150,000 in Toronto, Vancouver or Victoria, while the total borrowing could be no more than four times the qualifying income, or 4.5 times in the three pricey cities. "It was literally like they sat in a room by themselves, without anyone who understood the industry, and just made up a bunch of stuff that made no sense," said Laird.

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