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Canada to allow 30-year mortgages for new construction

Photo: Sean Kilpatrick Archives The Canadian Press The Canadian Home Builders Association has advocated for longer amortization periods.

The Canadian Press in Toronto

1:32 p.m.

  • Canada

The Canadian government will allow 30-year amortization periods on insured mortgages for first-time buyers of newly constructed homes.

Finance Minister Chrystia Freeland made the announcement Thursday in Toronto, saying the measure would come into effect on August 1.

The Canadian Home Builders Association has called for longer amortization periods, saying five additional years would help provide more stimulus and make construction more affordable.

Ms. Freeland also said the government would nearly double — from $35,000 to $60,000 — the amount first-time home buyers can withdraw from their Registered Retirement Savings Plan (RRSP) to purchase a house.

This new measure will come into effect on April 16, the day the federal budget is expected to be released.

People who make such withdrawals between January 1, 2022 and December 31, 2025 also have more time to begin repayment – ​​up to five years total instead of two.< /p>

Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116