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.

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