This new policy will take effect on August 1, 2024 and offers:
- Up to 30-Year Amortization on Insured Mortgages
- ONLY on Newly Built Homes
- ONLY for First-Time Home Buyers
The Government will also raise the amount first-time home buyers can withdraw from their RRSPs from $35,000 to $60,000 to buy a home.
- This will take effect April 16, 2024 when the federal budget is set to be released
- Those who made withdrawals between January 1, 2022 and December 31, 2025 are getting more time to repay — up to five years instead of two.
These changes are meant to work in tandem with the First Home Savings Account, which allows prospective home buyers to start saving for up to 15 years from opening the account, with an $8,000 deposit cap per year and lifetime cap of $40,000.
The federal government also announced changes to the Canadian Mortgage Charter that will include an expectation that financial institutions offer permanent amortization relief to protect existing homeowners who meet certain eligibility criteria. The idea would be to allow eligible homeowners to reduce their monthly payments to a number they can afford for as long as needed.
We’d welcome an opportunity to discuss Canada to Allow 30-Year Amortization for First-Time Home Buyers’ Mortgage on New Homes. If you have any questions about our services, please contact our team.