Breaking News for First-Time Homebuyers!
By Power Properties
Exciting news for anyone looking to buy their first home, especially those considering a new build! The federal government recently announced changes that will make homeownership more attainable for many Canadians.
Here's the breakdown:
Longer Amortization Periods for New Builds: Starting August 1st, first-time homebuyers purchasing newly built homes will be eligible for mortgages with 30-year amortization periods on insured mortgages. This means lower monthly payments, making those dream homes more affordable.
Increased RRSP Withdrawal for Down Payments: The amount you can withdraw from your RRSP for a down payment is jumping from $35,000 to $60,000, effective April 16th. This is a great way to boost your savings and get closer to that down payment goal.
What the Experts Are Saying (CTV News):
Industry leaders are cautiously optimistic about the changes. Mortgage Professionals Canada CEO Lauren van den Berg sees this as a "step in the right direction" for affordability, but emphasizes the need to expand the program to all homebuyers, regardless of whether they're buying new or existing.
Canadian Home Builders' Association CEO Kevin Lee is more enthusiastic, calling it a "game changer" that will not only help first-time buyers but also spur new construction.
Other Helpful Updates:
The deadline to repay RRSP withdrawals for a down payment has been extended to five years for withdrawals made between January 1, 2022, and December 31, 2025. This gives you more flexibility to manage your finances.
The First Home Savings Account (FHSA) program is gaining traction, with over 750,000 Canadians already signed up.
Thinking of Buying?
These changes are a positive step towards making homeownership a reality for more Canadians. Power Properties is here to help! Contact us today to discuss your options and get started on your journey to homeownership.
We look forward to helping you find your dream home!