Madam Speaker, I thank my NDP colleague for his question.

Every Canadian deserves a safe, affordable and accessible place to call home. However, as we all know, one of the hardest things for a first-time homebuyer is to scrape together enough funds for a down payment and cover the associated costs of a home purchase. That is why budget 2019 announced a number of new initiatives to make it more affordable for Canadians to buy a home.

This builds on Canada's national housing strategy by taking concrete action to increase access to housing that is affordable and to help middle-class Canadians realize their dream of owning a home.

To address the difficulty that young families may be have in becoming homeowners, budget 2019, through Bill C-97, which is currently before Parliament, proposes a new first-time homebuyer incentive. With this extra help in the shape of a shared equity mortgage through the CMHC, Canadians can lower their monthly mortgage payments, making home ownership within reach. Qualified first-time homebuyers who save their minimum 5% down payment would be eligible for a 10% shared equity mortgage for a newly built home or a 5% shared equity mortgage for an existing home.

That means that first-time homebuyers will be able to save money every month, giving them more money to pay down their traditional mortgage sooner or to spend on their priorities.

It is expected that approximately 100,000 first-time homebuyers will benefit from this incentive over the next three years. The program criteria will make it easier for eligible first-time homebuyers to buy homes they can afford.

The even more generous incentive for new builds may also encourage home construction, which will address some of the housing supply shortages in Canada, particularly in our largest cities.

Bill C-97 also proposes to increase the home buyers' plan withdrawal limit from $25,000 to $35,000. That means first-time homebuyers will be able to withdraw larger amounts from their RRSPs in order to buy a home. This is the first time the withdrawal limit has been increased in 10 years.

In closing, the new measures set out in budget 2019 will make housing more affordable by lowering the barriers to home ownership for first-time homebuyers and stimulating the Canadian housing market.

Rémi Massé

Transcript

Adjournment Proceedings

Discussions (0)