The government has announced they will increase the withdrawal limit for the Home Buyers’ Plan to $35,000 from $25,000.
The program was introduced in 1992, and allows Canadians to borrow from their RRSPs in order to buy a home.
“The Home Buyers’ Plan has helped so many Canadian families realize their dream of home ownership,” said the president of the Canadian Real Estate Association, Pauline Aunger. “Today’s commitment to increase the withdrawal limit of the HBP will ensure that the dream stays within reach for today’s young people.”
She continued, “Maintaining the value of the HBP by increasing withdrawal limits is critical. In my own real estate business I have seen so many hard working families and first-time home buyers use this program to build a more secure financial future for themselves. By reducing or avoiding mortgage default insurance fees and building home equity sooner, Canadians can put their own money to work for them.”