Owning a home is a significant right of passage which many young Canadians hope to achieve one day.
Owning a home is a significant right of passage which many young Canadians hope to achieve one day. As housing prices continue to rise and the available market decreases, it is becoming much harder to turn the dream into reality. The Canadian government is taking steps to fix this imminent problem. Their goal through a series of changes is to make housing more affordable and accessible, specifically for new home buyers.
The First-Time Home Buyer Incentive program was announced in the 2019 federal budget. This program will focus on making the process of buying a home easier for first-time buyers. Under this program, eligible home buyers could share the cost of a new home with the Canada Mortgage and Housing Corporation (CHMC). Those who qualify to the program could see lower monthly payments and a host of other benefits.
This program as an investment in communities and people. He wants to take these concrete steps to help make homeownership a common reality, not simply a privilege for a select few.
Here are a few specifics regarding the First-Time Home Buyers program.
- The program is focused on helping families or individuals who earn less than $120,000 per year afford their first house.
- Eligible home buyers would enter into a shared investment with the CHMC who would put up five-percent of the home’s value.
- This investment is raised to ten-percent for those building a new home. This incentive is designed to encourage growth in the housing supply.
- The CMHC will release additional and more detailed information about the First-Time Home Buyer Incentive later this year.
The Canadian government’s 2019 budget also discussed the possibility of increasing the withdrawal limit to the Registered Retirement Savings Plan savings to help first-time home buyers access their retirement savings. The budget proposed to increase the limit from $25,000 to $35,000.
As we obtain additional information about the program, we will share it with you.
For more information on this program, please refer to the 2019 budget.