2019 Federal Budget

Key Highlights on the 2019 Federal Budget on the topic of Housing

1 Shared Equity Program with CMHC (Canadian Mortgage & Housing Corporation)

What is it:

Government's incentive to help first time homebuyers with affordability

Purpose of Program 

Lower monthly mortgage payments by reducing total mortgage amount by 10% of purchase price (for new builds) or 5% of purchase price (for existing builds)

Requirements:

• First time home buyer with minimum down payment under an insured mortgage = 5% down payment

• Household income cannot exceed $120,000Mortgage cannot exceed more than 4x your income 

How is the shared equity paid back to CMHC? 

Further details have not been disclosed

2 Increase on Home Buyers Plan Withdrawal Limit

What is it:

Allows home buyers to withdraw from their RRSP tax free 

Requirements:

• First time home buyer 

• Withdrawal limit has increased from $25,000 to $35,000

3 Increasing Housing Supply

To maintain a moderate growth on housing prices, the government has taken initiative to build 42,500 new housing units across Canada, focusing on areas with low rental supply. $10 billion in financing will be spent over the span of 9 years for this program.

4 Strengthening Rules & Compliance over Housing

Increase data sharing on real estate purchases to enforce tax compliance and anti-money laundering. 4 new audit teams have been created at CRA to monitor real estate transactions.