The 2019 federal budget includes a new program, the First-Time Home Buyer Incentive, to make it easier for more Canadians to buy their first home.
Many young Canadians dream of home ownership. But, with rising house prices and not enough homes to meet demand, it’s getting harder and harder to make that dream a reality.
Under the new program, eligible first-time home buyers could share part of the cost of buying a home with the Canada Mortgage and Housing Corporation (CMHC). The size of their insured mortgage would be reduced and result in lower monthly mortgage payments.
The new incentive would see the CMHC provide five per cent of the value of a home for a first-time home buyer through a shared investment. To encourage the construction of new housing supply, the incentive would increase to 10 per cent for a newly-built home.
Budget 2019 also proposes to increase the Home Buyers’ Plan withdrawal limit from $25,000 to $35,000, providing first-time home buyers with greater access to their Registered Retirement Savings Plan savings to buy a home.
“We believe in investing in people and communities, which is why we are taking real, concrete steps to make sure home ownership remains an achievable dream, not a privilege afforded to only the richest few,” said Prime Minister Justin Trudeau.