Today, the federal government announced a new initiative to help Canadians purchase their first home. According to a press release, "the First-Time Home Buyer Incentive will help middle class families take their first steps towards homeownership by reducing monthly mortgage payments required for first-time homebuyers without increasing the amount they need to save for a downpayment."
Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation, says that the "proposed measures will reduce the monthly mortgage for your first home by up to $286."
"This will mean more money in the pockets of Canadians and will help up to an estimated 100,000 families across Canada," he continues.
Perhaps most exciting, "the incentive is not interest bearing and does not require ongoing repayments," according to a new info page on the government of Canada website. Though beneficiaries must pay back the incentive within 25 years.
Canadian citizens, permanent residents, and work-permit holders are eligible to apply. Applicants' income must not exceed $120,000.
Applications open on September 2nd, 2019.
The First-Time Home Buyer Incentive is part of the government's National Housing Strategy, which has the ambitious goal of "[removing] 530,000 families from housing need, cut chronic homelessness by 50%, and change the face of housing in Canada forever."
Among the other National Housing Strategy initiatives is a program that gives low-cost loans to "repair and renew" "affordable housing shelters, transitional and supportive housing."
These new plans come as the cost of living continues to skyrocket in many Canadian cities, especially Toronto and Vancouver. Montreal, one a bastion of affordable living on an otherwise unaffordable cotinent, has also seen prices creep up in recent years.
The First-Time Home Buyer Incentive is one step toward relief for middle-class prospective homebuyers.
Stay tuned for more information. Review the National Housing Strategy website here.