Last week, it was announced in the proposed Budget a number of enhancements to assist Canadians with home ownership.

Increased RRSP Withdrawals: For Canadians saving up for a down payment on their first home, Budget 2024 will propose to increase the Home Buyers’ Plan limit from $35,000 to $60,000. The Home Buyers’ Plan is an existing federal program that lets Canadians withdraw from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. 

Extended Repayment Grace Period: Canadians who withdraw from their Home Buyers’ Plan between January 1, 2022 and December 31, 2025 will now have up to five years before they need to start repayments

Extended Mortgage Amortization: To help more younger Canadians afford that first home of their own, the government will allow 30-year mortgage amortizations for first-time home buyers purchasing newly built homes, effective August 1, 2024. 

Amortization Relief: Permanent amortization relief will be made available to protect existing homeowners that meet specific eligibility criteria. Amortization relief means eligible homeowners can reduce their monthly mortgage payment to a number they can afford, for as long as they need to.