CMHC changes rules for first-time buyer shared equity incentive program
At a glance (2 minute read)
- Metro Vancouver first-time home buyers now qualify at a $150,000 annual income, with a borrowing amount of 4.5 times their qualifying income.
- CMHC is limiting its share in the depreciation of a home at the time of repayment up to a maximum loss of eight per cent per year.
On June 2, 2022, Canada Mortgage and Housing Corporation (CMHC) announced it had changed the rules for the government’s Place to Call Home First-Time Home Buyers Incentive program.
The incentive, a federal shared-equity mortgage program introduced in 2019, offers five or 10 per cent of a home’s purchase price to put toward a down payment.
This is in addition to the first-time buyer’s down payment and lowers mortgage carrying costs, making home ownership more affordable.
CMHC is limiting its share in the appreciation of a home. Home owners will now be required to pay back up to eight per cent per year on the incentive amount from the date of advance to the time of repayment.
CMHC is also limiting its share in the depreciation of a home at the time of repayment up to a maximum loss of eight per cent per year.
First-time home buyers in Metro Vancouver are now eligible for:
- An increased qualifying annual income of $150,000 instead of the previous $120,000; and
- An increased total borrowing amount of 4.5 instead of 4.0 times their qualifying income.
To date, only 500 first-time buyers in BC, and 15,800 Canada-wide, have received this incentive.
Watch these videos:
- Part 1 - What is the First-Time Home Buyer Incentive?
- Part 2 - Am I eligible for the First-Time Home Buyer Incentive?
- Part 3 - How does the First-Time Home Buyer Incentive work?
- Part 4 - How do I apply to the First-Time Home Buyer Incentive?
Read how the federal First-time Home Buyer Incentive works.