LIB­ER­ALS TO HELP FIRST-TIMERS

Richmond Hill Post - - Cover Story -

The 2019 fed­eral bud­get, an­nounced in March, in­cludes an af­ford­able hous­ing plan for first-time home­buy­ers. Here are the key points: • A pro­posal to in­crease the Home Buy­ers’ Plan RRSP with­drawal limit from $25,000 (set 10 years ago) to $35,000 • A shared eq­uity mort­gage for first-time home­buy­ers with the Canada Mort­gage and Hous­ing Cor­po­ra­tion where CMHC will of­fer a 10 per cent shared eq­uity mort­gage for a newly con­structed home and a five per cent shared eq­uity mort­gage for an ex­ist­ing home. El­i­gi­ble first-time home­buy­ers’ cri­te­ria: – a house­hold in­come un­der $120,000 per year; – an in­sured mort­gage with the CMHC: in­sured mort­gages are those where the

down pay­ment is less than 20 per cent of the home price; – the in­sured mort­gage and the in­cen­tive amount can­not be greater than four

times the home­buyer’s an­nual house­hold in­come. Tim Hu­dak, CEO of the On­tario Real Estate As­so­ci­a­tion and for­mer On­tario PC leader, was pos­i­tive about the news over­all, stat­ing that it was a step for­ward but that there was more work to be done. “The as­sis­tance for Canada as a whole is prob­a­bly set at the right level, but for more ex­pen­sive mar­kets, like the GTA, it is very mod­est,” he says. “They’ve opened the door. It is set to kick in this fall, and hope­fully they can ad­just the level given the feed­back they’ve been get­ting re­gard­ing the GTA and Van­cou­ver.”

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