New Mortgage Rules: How Recent Updates and Programs Benefit First-Time Home Buyers in Canada
- Solmaz Esmaeili
- Aug 19, 2024
- 1 min read
Updated: Nov 1
Recent and proposed updates to Canadian mortgage laws aim to make homeownership more accessible for first-time buyers. Key points:
Proposed Changes
Extended Amortization: A proposed 30-year amortization for new homes (vs. 25 years) could take effect on August 1, 2024, to reduce monthly payments for first-time buyers.
Existing Programs
Home Buyers' Plan (HBP): Withdraw up to $35,000 from your RRSP for a down payment, repayable within 15 years.
First Home Savings Account (FHSA): Save up to $8,000 per year, tax-free, with a lifetime limit of $40,000. Contributions are tax-deductible, and withdrawals are tax-free.
Home Buyers' Amount: Claim up to $10,000 on your tax return if you haven't owned a home in the past four years.
GST/HST New Housing Rebate: Recover some GST/HST on new or renovated homes.
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