Finance Minister Announcement – 30 Year Amortization & RRSP

On Thursday, April 11, Finance Minister Chrystia Freeland announced several important changes aimed at supporting first-time homebuyers and enhancing housing affordability in Canada. Here are the key points:

1. Extended Amortization for Insured Mortgages: The government will allow 30-year amortization periods for insured mortgages specifically for first-time homebuyers purchasing newly built homes. This measure is designed to make monthly mortgage payments more affordable by spreading them over a longer period.


2. Enhancements to the RRSP Home Buyers’ Plan (HBP): Freeland announced improvements to the Registered Retirement Savings Plan (RRSP) Home Buyers’ Plan, which allows first-time buyers to withdraw funds from their RRSPs to purchase a home. The specifics of these enhancements were not detailed in the initial summary but are aimed at increasing the accessibility of the program for prospective homeowners.

These initiatives, effective from August 1, reflect the government’s focus on reducing the financial barriers to homeownership for new entrants into the housing market.