2024 Budget Results for Housing
It’s all done! The 2024 federal budget has just been unveiled, and it's packed with initiatives aimed at tackling housing affordability and supporting Canadians on their homeownership journey.
Check out the Key Points for housing.
* 30-year amortizations for some first-time buyers: Starting August 1, the maximum amortization will be raised from 25 to 30 years for first-time buyers purchasing a new-build property with a down payment of less than 20% (an insured mortgage). The government also proposed changes to the Canadian Mortgage Charter that would allow permanent amortization relief for qualifying existing homeowners.
* Increase to the Home Buyers’ Plan limit: Starting today, first-time buyers will be able to withdraw up to $60,000 (previously $35,000) from their Registered Retirement Savings Plan (RRSP) tax-free for the purchase of their first home. This includes an extension of the grace period to start repaying the loan by an additional three years.
* Additional protections for renters in the form of a Canadian Renters’ Bill of Rights. This includes the launch of a Tenant Protection Fund and leveraging rental payment history to improve credit scores.
* Housing Accelerator Fund increase: A $400-million top-up to this $4-billion fund.
* A plan to build 3.87 million new homes by 2031, including 2 million net new homes in addition to the 1.87 million homes that the Canada Mortgage and Housing Corporation forecasts will be built by that year.
* The launch of Canada Builds, a program that combines federal low-cost loans with provincial and territorial investments to scale up the construction of rental homes on under-utilized lands.
* $10 million invested in the Skilled Trades Awareness and Readiness program to motivate high school students to pursue careers in the skilled trades.
* $50 million directed to the Foreign Credential Recognition Program, specifically to support residential construction and assist skilled trades workers in building more homes.
* $90 million for the Apprenticeship Service, to create apprenticeship opportunities to train and recruit the next generation of skilled trades workers.
* Modernizing housing data: $20 million for Statistics Canada and CMHC to modernize and enhance the collection and dissemination of housing data, including municipal-level data on housing starts and completions.
* Cracking down on mortgage and real estate fraud: The government said it plans to consult with the mortgage industry on developing income verification tools through the Canada Revenue Agency.
Whether you're a seasoned homeowner or a first-time buyer, Campbell Mortgages is here to support you every step of the way. Let's turn your homeownership dreams into reality together! Contact us today to learn more about our services and how we can help you achieve your housing goals.