Government to Extend Amortization Periods for First-Time Homebuyers

We are excited to share the latest updates on government initiatives aimed at improving housing affordability and access to homeownership for Canadians. As part of ongoing efforts to address the challenges faced by first-time homebuyers and renters, the Canadian federal government has introduced several key measures:

• Extended Amortization Periods: Starting August 1, first-time homebuyers purchasing newly built homes will be eligible for 30-year amortization periods on insured mortgages. This extension offers buyers greater flexibility in managing mortgage payments, potentially easing the financial burdens associated with homeownership.
• Increased RRSP Withdrawal Limits: Effective April 16, eligible individuals can now withdraw up to $60,000 from their RRSPs (Registered Retirement Savings Plans) for home purchases, up from the previous limit of $35,000. This adjustment aims to provide prospective homebuyers with increased access to funds for down payments, facilitating their entry into the housing market.
• Extended Repayment Period: The repayment period for RRSP withdrawals made between January 1, 2022, and December 31, 2025, has been extended to five years, offering borrowers more time to repay the borrowed amount.

These measures come amidst growing concerns over housing affordability, particularly among younger Canadians facing high rents and escalating home prices. The government's initiatives seek to make homeownership more attainable for first-time buyers, realizing the dream of owning a home for many Canadians.

Additionally, Prime Minister Justin Trudeau has announced plans for a new $1.5-billion "Canada Rental Protection Fund" to support renters facing affordability challenges across the country.

Visit Government of Canada to learn more about their initiatives on housing affordability.

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