Every Canadian deserves to have a safe and affordable place to call home. That is why the Government of Canada is helping middle class Canadians buy their first home through the First-Time Home Buyer Incentive.
Today, the Honourable Ahmed Hussen, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), Adam Vaughan, Parliamentary Secretary to the Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC), and, Terry Beech, Member of Parliament for Burnaby North – Seymour, announced the launch of the expansion of the First-Time Home Buyer Incentive for Toronto, Vancouver, and Victoria, as proposed in the Fall Economic Statement.
Starting today, May 3, 2021, through to the end of the program, eligibility is enhanced for applicants in the Census Metropolitan Areas of Toronto, Vancouver and Victoria, by raising their qualifying income threshold from $120,000 to $150,000 and by increasing their total borrowing threshold from 4 to 4.5 times their qualifying income. With a minimum down payment, this targeted expansion raises the maximum house price for eligible first-time home buyers in these cities from about $505,000 — under the original program parameters — to about $722,000. The original parameters will remain the same for all other housing markets.
The First-Time Home Buyer Incentive helps middle class families take their first steps towards homeownership by reducing their monthly mortgage payments without adding to their financial burdens.
Check out the First-Time Home Buyer Incentive program and enhancement details, and the fact sheet explaining potential savings.
“Houses in Canada are for Canadian families to live in. Today’s expansion of the First-Time Home Buyers Incentive, which we committed to in the Fall Economic Statement, will help first-time homebuyers and will help bring the dream of homeownership within reach for people in some of Canada’s most expensive housing markets.”
“Every Canadian deserves a safe and affordable place to call home. The First-Time Home Buyer Incentive supports middle-class Canadians who need more assistance with housing costs. Thanks to mortgage payments that are more affordable, families will have more money in their pockets each month to spend in ways that improve their quality of life now and for the years to come.”
“The First-Time Home Buyer Incentive is the part of the National Housing Strategy that helps Canadians access home ownership. Our government recognizes that making the choice to own for the first time is a challenge, especially in major markets where housing costs are rising fastest. To that end, the new enhancements under the Incentive increases the eligibility of the programme in Toronto, Vancouver and Victoria to now allow purchases of up to $722,000. This will give new home owners greater access to housing options that meet their needs.”
“The First-Time Home Buyer Incentive is designed to help middle class Canadians enter the housing market. Thanks to new enhancements under the Incentive available starting today, prospective new homeowners in our expensive Vancouver and Victoria markets will be more easily able to afford their first home.”
Quick facts about the First-Time Home Buyer Incentive:
- Canada’s First-Time Home Buyer Incentive (Incentive) helps qualified first-time homebuyers purchase their first home as the Incentive reduces the size of their insured mortgage and their corresponding monthly mortgage payment.
- The Government of Canada allocated $1.25 billion through Budget 2019 over three years (starting in 2019) for this program.
- The Incentive allows eligible first-time homebuyers who have the minimum down payment for an insured mortgage (through Canada Guarantee, CMHC or Sagen) to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.
- The program offers qualified first-time homebuyers a 5 or 10 per cent shared equity mortgage for a newly constructed home or a 5 per cent shared equity mortgage for an existing home.
- No on-going repayments are required, the Incentive is not interest bearing, and the borrower can repay the Incentive at any time without a pre-payment penalty.
- From May 3, 2021 to end of program, the government is expanding eligibility in the Census Metropolitan Areas of Toronto, Vancouver and Victoria by raising the qualifying income threshold from $120,000 to $150,000 and by increasing their total borrowing threshold from 4 to 4.5 times their qualifying income.
- Canada's National Housing Strategy (NHS) is a 10-year, $70+ billion plan that will give more Canadians a place to call home — this includes more than $13 billion committed through the 2020 Fall Economic Statement.
- Budget 2021 key housing measures includes helping to build, repair, and support 35,000 affordable housing units for vulnerable Canadians through an investment of $2.5 billion and a reallocation of $1.3 billion in existing funding.
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC’s aim is that by 2030, everyone in Canada has a home they can afford, and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.
To find out more about the National Housing Strategy, visit www.placetocallhome.ca.
Information on this release:
Office of the Minister of Families, Children and Social Development
Canada Mortgage and Housing Corporation, Media Relations