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Summary – 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 could give first time homebuyers the option to share the cost of purchasing a home with CMHC. This would be done through funding/equity sharing that would cover a portion of the purchase price. For existing homes, up to 5% of the purchase price; for newly constructed homes up to 10%.

In order to quality for these benefits, 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.