Chrystia Freeland, Canada’s Deputy Prime Minister and Finance Minister, unveiled a series of housing affordability measures aimed at assisting both prospective and current homeowners. Speaking in Toronto, she expressed optimism that these initiatives would offer reassurance and hope to young Canadians. Effective April 16, the maximum amount first-time home buyers can withdraw from their RRSPs for a down payment will increase from $35,000 to $60,000.
Additionally, Freeland extended the repayment period for RRSP withdrawals used for home deposits from two years to five years for withdrawals made between January 1, 2022, and December 31, 2025. She also outlined adjustments to the mortgage repayment amortization schedule.
The Canada Mortgage and Housing Corporation has emphasized the need for Canada to construct 3.5 million more homes by 2030 to bring affordability levels back to those seen in 2003-04.
The Canadian Home Builders’ Association released a statement expressing its approval of the 30-year amortization period introduced by Freeland, stating that the measure will significantly contribute to revitalizing the market. Kevin Lee, the association’s CEO, emphasized that the government’s acknowledgment of the importance of integrating first-time home buyers into the market was evident through this announcement.