2019 Federal Budget
The Federal Government announced their official 2019 budget and affordable housing was certainly a high priority topic.
First, the Canada Mortgage and Housing Corporation (CMHC) First Time Home Buyers Incentive Plan. This could give first time homebuyers the option to share the cost of purchasing a home with CMHC. This will be done through cash/equity that would cover a portion of the purchase price. For existing homes, up to 5% of the purchase price; for newly built homes up to 10%.
In order to quality for these benefits in the 2019 Federal Budget, borrowers must not have a total household income over $120,000. Further, borrower cannot borrow more than 4 times their annual household income. So, if your total household income were $100,000, then the maximum mortgage amount you could obtain would be $400,000.
Secondly, a Home Buyers Plan RRSP Increase from $25,000 to $35,000 for an RRSP withdrawal.
For now, these had been no official statement relating to adjustments to the B-20 Stress Test. OSFI does recognize that a number of changes have occurred over the past 18 months. The federal government’s October 2016 qualification rate changes apply to insured mortgage loans, a different group of loans from the Guideline B-20 changes, which focus on uninsured mortgage loans.