Positive News for First-Time Homebuyers

As the Chair of the Government Relations committee I have had the honour of personally visiting Ottawa with the Minister of Finance Office, The Prime Minister Office and the Housing Caucus to ensure our message of the importance of mortgage brokers and our industry to the Canadian economy is heard loud and clear.   Personally being involved with suggestions on how the government can help house Canadians and seeing the fruits of our labour come to fruition tells me our government is listening.  The message of increasing the HBP withdrawal was one of our agenda items.  You can be confident that CAAMP and its committees are dedicated in ensuring our industry is top of mind with our government. 

Please read the latest communication from CAAMP in this regard.
Eddy Cocciollo 

Positive News for First-Time Homebuyers…

We welcome the Conservative Government’s announcement today proposing to increase the RRSP Home Buyers’ Plan (HBP) withdrawal up to $35,000 from the current $25,000 for first-time homebuyers. If implemented, a couple buying a home together would have access to an extra $20,000 of their RRSPs to help with their down payment and other expenses relating to their home purchase.

Borrowers are considered first-timers if, in the past four years, they have not lived in a home that they or their current spouse/common-law partner owned. (See Conditions.)

As you may be aware, CAAMP regularly visits both federal and provincial government officials. This announcement is in line with the kind of recommendations that CAAMP makes during meetings with officials in the Ministry of Finance Office and the Prime Minister’s Office.

The government respects our industry-leading research and sees your association as a positive resource. Our latest research report released in June – A Profile of Home Buying in Canada prepared by CAAMP Chief Economist Will Dunning – shows withdrawals from RRSPs (including via the HBP) accounted for 10% of down payment funds for first-time buyers. If put into action, this proposed HBP withdrawal increase would go a long way in helping first-time homebuyers across Canada.

Today’s announcement follows Stephen Harper’s first big-ticket promise of his campaign: another tax break for home renovations made earlier this month.

Taxpayers would be able to claim up to 15% of the cost of permanent “substantial” renovations to homes, condos and cottages. The tax credit would apply to renovation costs between $1,000 and $5,000, allowing a taxpayer to get back up to $600 per year.

We look forward to more positive housing-related announcements from other campaigns leading up to the fall election.

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