First Time Home Buyers were given a boost today.
Here are the highlights:
New program: First-Time Home Buyer Incentive
A fund administered by Canada Mortgage and Housing Corp. (CMHC) will provide 5 % of the cost of an existing home and 10% of a new home through what amounts to an interest-free loan to be repaid when the property is sold.
Key points: Borrowers must have a down payment of at least 5% — but less than 20% — and a household income under $120,000.
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. Here’s more information: https://www.cbc.ca/news/business/budget-cmhc-home-buyers-1.5063204
Home Buyer’s Plan: 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.
Buyer’s will be able to use the plan if they experience the breakdown of a marriage or common-law partnership.
At Lang Financial, we service customers across Canada. Primarily, we offer Financial Advice in Southern Manitoba and Northwestern Ontario areas.
I work with Castle Insurance Group Inc.