There is a different trap for the home buyer. 

You get an extra loan, but it is a 2nd mortgage. If you wish to move, you have to pay off the 2nd mortgage, plus find enough money for a down payment for your new home. You could be stuck in your 1st home for a while.

I'm dating myself, but many years ago Ontario had a similar program for a while. Because the government loan had to be paid off in full if I sold the property rather than being portable, I decided not to take the loan. I was considering a "starter" home I could afford, but expected to move up in 10 years of less, and didn't like the idea of having to pay off that loan immediately.