Federal government announces financial aid for first-time homebuyers

In an effort to ease financial burdens on homebuyers in hot markets (such as Toronto and Vancouver), the federal government announced in their latest budget a new incentive programme for households making under $120,000 per year.

A National Post article summarized the new initiative:

Under the $1.25-billion incentive program, prospective buyers who have the minimum down payment for a home can apply to finance between 5 and 10% of their mortgage via a shared equity program administered by CMHC. The 10% cap applies to newly constructed homes.

As well, the government announced that first-time buyers can now withdraw up to $35,000 from their RRSPs to go toward their home purchase. The maximum amount was previously $25,000. Couples can jointly withdraw up to $70,000 from their RRSPs. The previous limit had been in place for a decade.

If you want to learn more about this programme, please contact us. We can provide you with details and help you through the process if you qualify.

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