Homeownership, a significant challenge for young Canadians, is at the heart of the new measures announced by the federal government. Chrystia Freeland, Deputy Prime Minister and Minister of Finance, has unveiled the 2024 budget, which includes substantial improvements aimed at facilitating this goal.

Increase in the HBP Limit

The budget introduces an increase in the Home Buyers' Plan (HBP) contribution limit, from $35,000 to $60,000. This program allows first-time buyers to withdraw funds from their registered retirement savings plans (RRSPs) to finance their down payment. This significant increase will enable further use of the tax advantages of RRSPs to save up to an additional $25,000.

Integration of the FHSA

Simultaneously, the government continues to promote the First Home Savings Account (FHSA), which allows annual contributions of $8,000 up to a total of $40,000. Since its launch a year ago, over 750,000 Canadians have opened an FHSA, demonstrating its success.

Extension of the Amortization Period for New Buyers

Another key measure is the authorization of a 30-year amortization period for mortgages on new first homes, effective from August 1, 2024. This extension will make it easier for young people to manage their mortgage payments, thereby increasing their chances of purchasing a first property.

Permanent Extension of the Amortization Period for Current Homeowners

The budget also plans a permanent extension of the amortization period to help current homeowners reduce their monthly payments. This initiative will allow homeowners to better manage their finances during economic difficulties.

Extended Grace Period for HBP Repayment

For those who have used or will use HBP funds between January 1, 2022, and December 31, 2025, an additional three-year grace period is offered, extending the time before repayment begins to five years. This measure is designed to ease the immediate financial burden on new homeowners.

A Collaborative Effort

The government recognizes that achieving affordable housing accessibility requires close collaboration among all levels of government, the private sector, and non-profit organizations. The 2024 budget is part of an inclusive and comprehensive approach to address Canada's housing crisis.

In summary, the 2024 budget initiatives aim to reduce financial barriers to homeownership for young Canadians, thus providing concrete solutions to facilitate this crucial transition.

To explore these new opportunities together and benefit from programs facilitating home ownership, please contact us.

Source : Government of canada