What is the purpose of the first-time home buyers’ incentive?

The purpose of the first-time home buyers’ incentive is to aid first-time buyers with their down payment. This incentive is designed to make home ownership more accessible by providing financial assistance, which helps reduce the burden of the initial down payment. Typically, this program involves the government offering a shared equity program where they contribute a portion of the down payment, enabling first-time buyers to lower their mortgage amount and potentially reduce their monthly payments. This initiative supports new buyers in entering the housing market without facing overwhelming financial strain.

The other options do not align with the purpose of this incentive: increasing property taxes is contrary to assisting buyers, low-interest rates on mortgages relate to lending terms rather than direct assistance for down payments, and reducing loan approval times does not directly support the financial capability of buyers to make that initial purchase.