The End of the FTHBI

What's Next for First-Time Home Buyers?

In a recent move by the Canada Mortgage and Housing Corporation (CMHC), the First-Time Home Buyer Incentive (FTHBI) has been officially discontinued. While this program aimed to assist Canadians in owning their first home, it faced significant criticism for its restrictive nature, particularly concerning income and property value limits. This has been a point of contention, especially in urban areas where these limits were far from realistic. Others have criticized the ‘shared equity’ component of the program as having the potential to muddy property rights, limit equity growth upside while simultaneously maintaining all the downside risk for the home buyer.

As a company committed to helping you OWN, GROW, and PROTECT your wealth and assets, we recognize the importance of adapting to these changes and focusing on what truly benefits you. Although the FTHBI may have fallen short of its expectations, there remain numerous opportunities and programs designed to support first-time home buyers.

Alternatives Worth Considering:

• Home Buyer's Plan (HBP): Allows first-time buyers to withdraw up to $35,000 from their RRSPs to buy or build a qualifying home.
• Land Transfer Tax Rebates: Various provinces offer land transfer tax rebates for first-time homebuyers, which can significantly reduce the upfront costs of purchasing a home.
• First-Time Home Buyer's Tax Credit: A federal tax credit to help with the purchase of a first home, providing up to $750 in tax relief.
• Provincial and Local Incentives: Many provinces and municipalities offer additional incentives, such as reduced property taxes or grants for down payments, tailored to first-time buyers.

The discontinuation of the FTHBI signals a shift in the landscape of home buying in Canada, but it also opens the door to explore more effective and accessible means of entering the housing market. At First Foundation, we're here to guide you through these changes, ensuring you're informed about the best paths forward to OWN your dream home, GROW your wealth, and PROTECT your future.

In the wake of this program's end, let's focus on the bright side: the myriad of other opportunities still available to help you achieve your home-owning dreams. Our team of experts is ready to explore these alternatives with you, offering personalized advice and solutions tailored to your unique financial situation.

Contact us today to learn more!