The Canadian government will allow 30-year amortization periods on insured mortgages for first-time homebuyers purchasing newly built homes.
Finance Minister Chrystia Freeland made the announcement in Toronto today, saying it would take effect Aug. 1.
The Canadian Home Builders’ Association has advocated for longer amortization periods, saying five more years would help with affordability and spur more construction.
Freeland also said the government will nearly double — to $60,000 — the amount first-time homebuyers can withdraw from RRSPs to buy a home.
That’s up from $35,000, to take effect April 16, the day the federal budget is set to be released.
People who make such withdrawals between Jan. 1, 2022, and Dec. 31, 2025, are also getting more time to begin repayment — up to five years in total rather than two.
Learn more here: Putting home ownership back within reach and supporting Canadian homeowners – Canada.ca
Main take aways from this news…
1. **Expanded Home Buyers’ Plan (HBP):** The HBP withdrawal limit has been raised to $60,000, providing first-time buyers with more funds for a down payment.
2. **Extended Repayment Period:** With the longer amortization period and increased HBP limit, buyers have more flexibility in managing their finances.
3. **Financial Considerations:** Buyers should carefully evaluate their financial situation and consider the long-term implications of their mortgage and HBP choices.
4. **Consultation with Professionals:** It’s advisable for buyers to consult with mortgage advisors and financial planners to make informed decisions.
Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.
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