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.
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