For many Canadians, the dream of owning their own house is primarily...
Everyone knows that house prices across Canada have been a little crazy in the last few years. With supply tight and ever-increasing demand, prospective buyers are often finding themselves priced out of the market.
This has especially taken its toll on Young Couples, Millennials, and other first-time middle-class buyers. Many of them have opted to continue renting or living with family, instead of fulfilling their dreams of buying their first home.
Well, if you’ve been holding off on your first home too, do we have some great news for you!
In the recently announced Budget 2019, the Canadian government has made provisions for some much-needed relief to first-time home buyers under two programs – the brand new CMHC First-Time Home Buyer Incentive, and the updated Home Buyers Plan.
Under this program, the Canada Mortgage and Housing Corporation will step in with up to $1.25 billion over three years to help lower mortgage costs for eligible Canadians.
The money will go to first-time home buyers applying for insured mortgages. The government is planning to have the program up and running by September 2019.
While this is great news for anybody in the market for their first home, there are some important caveats:
Another measure to help first time home-buyers in the new budget is an enhancement to the existing Home Buyer’s Plan.
Right now, first-time buyers are allowed to take up to $25,000 out from their Registered Retirement Savings Plans (RRSP) to finance the purchase of a home, without having to pay tax on the withdrawal.
Budget 2019 is proposing to raise that cap to $35,000. The new limit would apply to HBP withdrawals made after March 19, 2019.
However, home buyers will have to put the money back into their RRSP over a period of 15 years, otherwise HBP withdrawal will be added to their taxable income.
If you were on the fence about becoming a home-owner for the first time, these changes proposed in Budget 2019 are welcome news!
However, with home prices being what they are, you will be hard pressed to find houses under the $500,000 limit in most major cities.
The good news: you can find some great Pre-Construction Condos at that price, right here on our website!
As Condos become more affordable thanks to the Government’s new incentives, expect more competition for the best units. To stay ahead of the curve and land your dream home, join the Condosky Insiders’ Club – you’ll get first access to pricing, floor plans, and VIP incentives!
For any questions, don’t hesitate to contact us.