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Trudeau’s Homebuyer Plan Offers Little Solace in Canada’s Pricey Markets

  • Canada starts down payment incentives for first-time buyers
  • Price caps on homes will squeeze options in Toronto, Vancouver
Real estate in Vancouver.

Real estate in Vancouver.

Photographer: James MacDonald/Bloomberg

Canadian Prime Minister Justin Trudeau wants to make housing more affordable for first-time buyers. His efforts may be of little help to people in the country’s priciest cities.

The national housing agency aims to spend up to C$1.25 billion ($940 million) over three years subsidizing down payments for new lower- to middle-income buyers. Under the program, launched Monday, the government will pay up to 10% of the purchase price in exchange for a stake in the home that would be paid back once it’s sold.