Thank you.
Division 18 of part 4 amends the National Housing Act to allow CMHC, the legislative authority, to deliver the first-time homebuyer incentive announced in budget 2019.
The first-time homebuyer incentive is a unique financing model that will help make home ownership more affordable for first-time homebuyers. The incentive would provide eligible first-time homebuyers with funding of 5% or 10% of the home purchase price. This would give eligible first-time homebuyers the ability to lower their borrowing costs by sharing the costs of buying a home with CMHC. The buyer would repay the incentive later, for example, on resale.
The amendments allow CMHC to acquire an interest or right in a housing project that is occupied or intended to be occupied by the owner of the project and to make an investment in order to acquire such an interest or right. The amendments also clarify that the Minister of Finance will approve terms and conditions for the incentive program.
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