03/20/2019
Are you a First Time Home Buyer or do you know someone that is looking to purchase their first home?
Yesterday's budget announced some changes to help first time buyers purchase a home.
Homebuyers, Part One: Under a new program called the First-Time Home Buyer Incentive, a fund administered by Canada Mortgage and Housing Corp. will provide 5 per cent of the cost of an existing home and 10 per cent of a new home through what amounts to an interest-free loan to be repaid when the property is sold. Key points: Users must have a down payment of at least 5 per cent -- but less than 20 per cent -- and a household income under $120,000. Also, 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.
Homebuyers, Part Two: The maximum tax-free withdrawal from registered retirement savings plans under the federal Home Buyers’ Plan rises to $35,000 from $25,000, effective immediately. Also, people will be able to use the HBP if they experience the breakdown of a marriage or common-law partnership and don’t meet the usual requirement of being a first-time buyer.
Stay tuned for more details.
