NEW: 30 Year Amortization, RRSP Withdrawal Limits

Date Posted: April 11, 2024

New housing affordability measures have been announced by the finance minister today. 

A new amortization period has been released for first-time home buyers purchasing newly built homes will be allowed to select a 30-year amortization period for those buyers in insured mortgages. This is up from the current maximum of 25 years and will become available as of August 1st, 2024. 

First-time home buyers using the RRSP Home Buyers Plan, effective April 16th, 2024, can now withdraw $60,000 to use as a down payment for a qualifying home. This is up from the current limit of $35,000. For withdrawals made between January 1, 2022, and December 31, 2025, repayment will also change giving home buyers five years to begin repayment up from the original two-year requirement. 

“Faced with a shortage of housing options and increasingly high rents and home prices, many younger Canadians feel that the dream of homeownership is just that, a dream,” Freeland said earlier this morning. “Our government is changing that. We want homeownership to be a reality for younger Canadians.”

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Government to allow longer amortizations for certain first-time buyers