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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!