🏠 Boosting Home Affordability: Trudeau Government Unveils RRSP and Mortgage Reforms
The Trudeau government has announced a series of measures aimed at making it easier for first-time homebuyers to enter the housing market and for current homeowners to manage their mortgage payments.
Key changes include:
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Increasing the maximum RRSP withdrawal limit for first-time homebuyers from $35,000 to $60,000. The repayment period has also been extended from 2 to 5 years.
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Allowing first-time buyers of newly constructed homes to access 30-year mortgage amortizations, up from the previous 25-year limit. This will lower monthly payments.
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Permanently extending mortgage relief measures, such as waived fees and the ability to renegotiate terms without re-qualifying under the stress test. This will help struggling homeowners.
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Over 750,000 first home savings accounts have been opened since their introduction, providing another tool for young Canadians to save for a down payment.
These changes come as a new parliamentary report warns that Canada needs to build 1.3 million additional homes by 2030 to address the housing supply shortage. The government is aiming to boost housing affordability through both demand-side and supply-side measures.
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Alex Ballingall
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