NEW: 30 Year Amortization, RRSP Withdrawal Limits
Government announces longer amortization periods for certain home buyers and an increase the FTHB RRSP withdrawals
New housing affordability measures have been announced by the finance minister today.
A new amortization period has been released for first-time home buyers purchasing newly built homes will be allowed to select a 30-year amortization period for those buyers in insured mortgages. This is up from the current maximum of 25 years and will become available as of August 1st, 2024.
First-time home buyers using the RRSP Home Buyers Plan, effective April 16th, 2024, can now withdraw $60,000 to use as a down payment for a qualifying home. This is up from the current limit of $35,000. For withdrawals made between January 1, 2022, and December 31, 2025, repayment will also change giving home buyers five years to begin repayment up from the original two-year requirement.
“Faced with a shortage of housing options and increasingly high rents and home prices, many younger Canadians feel that the dream of homeownership is just that, a dream,” Freeland said earlier this morning. “Our government is changing that. We want homeownership to be a reality for younger Canadians.”
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Government to allow longer amortizations for certain first-time buyers