Earlier this year, the Government of Canada released its 2019 Federal Budget, including the controversial and completely new First-Time Home Buyer Incentive Program. As this program is unlike anything else currently available, we are sharing the details of the incentive released by CMHC today, below.

To re-cap, there were two mortgage-related changes included in the 2019 Budget, both aimed at improving first time homebuyers’ opportunities to enter the housing market. These are:

1. Increase to the amount that an individual first time homebuyer may withdraw from their RRSP’s for the purpose of purchasing their first home.  Previously, the maximum one could withdraw was $25,000, but now the maximum withdrawal amount has been increased to $35,000. This increase acknowledges the higher costs housing costs and assists homeowners in accessing more low-cost funds to help with their first home purchase.  You can download the most recent ‘Home Buyers’ Plan Request to Withdraw Funds from an RRSP’ here.
2. The First-Time Home Buyer Incentive is an interest-free loan provided by the Government of Canada, which is intended to help reduce the monthly payment, improving cash-flow as a result.

At Kennedy Real Estate, we recommend you work with a Licensed Mortgage Broker, who will assist you in determining whether these programs, and others, will be right for you.  Our in-house Mortgage Team are members of the Mortgage Alliance Enrich Mortgage Group provide individualized qualification & credit assessments at no cost to you. Simply Apply Today; and one of our team will be happy to get things started right away!

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