First-Time Home Buyer Incentive To Become More Useful in Select Markets

The government has announced changes to the First-Time Home Buyer Incentive (FTHBI) to make it easier for first-time homebuyers in three of Canada's most expensive housing markets. First-time buyers will be able to purchase a home up to 4.5 times their household income, with a minimum down payment of $722,000. The program has struggled to gain traction among first-time buyers, with just 9,520 applications worth $173 million in shared equity mortgages. The CMHC's FTHBI program is most popular in Quebec, Alberta, Ontario, and B.C., but it does little to help those struggling to afford a home in some of the country's most expensive housing markets. It limited home purchases to $505,000 or less for those making the minimum down payment, and the average home price in Toronto is now $955,615 and $1.044 million in Vancouver.