The April 2024 Federal Budget in Canada has provided two incentives for First Time Home Buyers (FTHBs).
The
first allows FTHBs to buy new construction with less than a 20%
downpayment and have a mortgage amortized over 30 years. This allows for
lower payments and allows the borrower to qualify for a slightly higher
mortgage amount.
The second incentive, increased the
amount a FTHB can take from their RRSP to use towards the purchase of a
home from $35,000 to $60,000 and for a married couple this could provide
up to $120,000 for the purchase. Additionally the first repayment does
not start for five years if the withdrawl is made before December 31,
2025.
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