First Time Buyers - Changes in CMHC Rules Coming
CMHC is bring new rules into effect for first-time homebuyers starting September
Canada Mortgage and Housing Corporation is putting forward a new program aimed at assisting first-time home buyers with an estimated start date of September, 2019. Named the First-Time Home Buyer Initiative (FTHBI), the program does require government budgetary approvals prior to commencing. One can presume that the program is aimed to encourage demand for housing supply, countering recent restrictions on mortgage financing.
With a dedicated injection of $1.25 billion dollars spent over three years, applicants must not exceed $120,000 combined household income and the total borrowed amount must not exceed 4 x the income.
CMHC also expects that the program will be viable in the Vancouver real estate market despite the limitations placed on borrowing amounts. This will hopefully allow up to 10% of Vancouver's current owners to move up in the market as first time buyers are enabled to take their first step in property ownership.
CMHC expects the price inflation effect on the housing market to be less than 0.4%
Trickle up economics. Fingers crossed for approval and the September start date!