What changes the Federal Budget might make to housing affordability?
Here are the details:
1) First Time Home Buyer Incentive, as a way to help with housing affordability the government is earmarking $1.25 billion over three years for something it’s calling a "shared equity mortgage"
The details are not confirmed yet, but it will be more like an almost interest-free loan, where the repayment plan doesn’t require any payback until years in the future. In order to qualify, an applicant must have a household income of less than $120,000.00 per year and be able to come up with a 5.00% downpayment – the minimum required for an insured mortgage through Canada Mortgage and Housing (CMHC)
If the prospective buyer meets the conditions described above, under the program the CMHC would kick in up to 10.00% of the value of a newly built home, or 5.00% of the value of a resale home.
Precise details of the program won’t come out until later in the fall. Not a program we can start offering yet.
2) The government is also increasing the amount that a first-time buyer can withdraw from an RRSP, without penalty - $35,000.00 up from the current $25,000.00. Ottawa will also amend the RRSP withdrawal rules to help people who have been through family crises.
Starting this year, Canadians who have seen their marriages or common law partnerships break down will be able to participate in the Home Buyer’s Plan, even if they don’t meet the technical requirement of being a first time buyer.
Feel free to email me
Thanks,
Eileen
Eileen Craig, Independent Mortgage Professional
DLC Sea to Sky Mortgages
106-7015 Nesters Road, Whistler, B.C. V0N 1B7
Direct: 604-698-8583
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