Federal Budget changes for first time home buyers


Federal Budget changes for first time home buyers
Are you a first time home buyer? The budget includes one new program & changes to another to assist you. We were hoping for more but at least there was something! They include: First-Time Home Buyer Incentive A fund administered by Canada Mortgage and Housing Corp. (CMHC) will provide 5 % of the cost of an existing home and 10% of a new home through what amounts to an interest-free loan to be repaid when the property is sold. Borrowers must have a down payment of at least 5%, but less than 20% and a household income under $120,000. The purchase price of the home cannot be more than four times the buyers household income. This effectively limits purchases to just below $480,000, which is close to the national average resale home price. The program is expected to start in September, with further details to come this year. More information here. Home Buyer’s Plan* The maximum tax-free withdrawal from registered retirement savings plans under the federal Home Buyers Plan rises to $35,000 from $25,000. Buyer’s will be able to use the plan if they experience the breakdown of a marriage or common-law partnership. Stay tuned for more details as they are released!

Federal Budget changes for first time home buyers

Are you a first time home buyer? The budget includes one new program & changes to another to assist you. We were hoping for more but at least there was something! They include:

First-Time Home Buyer Incentive

A fund administered by Canada Mortgage and Housing Corp. (CMHC) will provide 5 % of the cost of an existing home and 10% of a new home through what amounts to an interest-free loan to be repaid when the property is sold. Borrowers must have a down payment of at least 5%, but less than 20% and a household income under $120,000.

The purchase price of the home cannot be more than four times the buyers household income. This effectively limits purchases to just below $480,000, which is close to the national average resale home price.

*The program is expected to start in September, with further details to come this year. More information here.

Home Buyer’s Plan

The maximum tax-free withdrawal from registered retirement savings plans under the federal Home Buyers Plan rises to $35,000 from $25,000. Buyer’s will be able to use the plan if they experience the breakdown of a marriage or common-law partnership.

Stay tuned for more details as they are released!