New Home Buyer Plan Changes 

T.J. Burnett, 
SISIP Financial Advisor Comox, BC 

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What you need to know

In a significant move to support first-time homebuyers, the government has recently announced changes to the Home Buyers’ Plan (HBP). This plan, designed to make homeownership more accessible, now allows individuals to withdraw up to $60,000 from their Registered Retirement Savings Plans (RRSPs), a substantial increase from the previous $35,000 limit. This enhanced limit provides prospective homebuyers with a greater financial cushion to cover down payments and associated costs, potentially easing the journey towards owning a home.

Additionally, another crucial change has been made regarding the repayment period. Previously, individuals had to start repaying their RRSP withdrawals within two years of purchasing their home. This timeframe has now been extended to five years, offering more breathing room for new homeowners to stabilize their finances and adapt to the responsibilities of homeownership without the immediate pressure of repayment. This extension is particularly beneficial in the current economic climate, where financial stability can be unpredictable.

These changes are expected to make a significant impact on the housing market, especially for first-time buyers who often struggle with accumulating a sufficient down payment. The increased withdrawal limit allows for more substantial initial investments, which can also lead to better mortgage rates and terms.

Furthermore, the extended repayment period provides a more manageable timeline for individuals to rebuild their RRSP savings without sacrificing their financial health. For members of the Canadian military and their families, these changes present an excellent opportunity to reconsider their homeownership plans.

Understanding the implications of these changes and how to best leverage them can be complex, and that’s where professional financial advice becomes invaluable. SISIP is here to help. With expertise in serving the financial planning needs of Canadian military personnel, SISIP advisors can provide tailored advice and guidance.

To navigate these new changes effectively and plan your path to homeownership with confidence, reach out to SISIP and book an appointment today. Your dream home is closer than ever.