How the 2019/2020 Federal Budget affects the local Real Estate Market

Highlights from the 2019/2020 Federal Budget that affect our local Real Estate Market

On Tuesday, March 19, the federal government released the 2019/2020 budget.

These announcements will help first time buyers enter the market, and make housing more accessible for all Nova Scotians.

Here are the highlights from the budget:

Increasing the Home Buyers' Plan (HBP) Withdrawal Limit from $25,000 to $35,000. This increase, advocated for by REALTORS®, to $35,000 will allow home buyers greater access to their own savings to purchase a home. To date, the HBP has helped over 2.9 million Canadians achieve home ownership.

Expanding Eligibility for the HBP During Significant Life Changes. REALTORS® have advocated that expanding the use of the HBP is a fiscally-conscious way to help Canadians maintain home ownership after experiencing a breakdown in their marriage or common-law partnership.

First-Time Home Buyer Incentive. This program will allow Canadians to purchase a home and lower their monthly payments by sharing the cost of the mortgage with the government. The incentive will provide 5 or 10 per cent of the cost for eligible home buyers. Canada Mortgage and Housing Corporation (CMHC) will receive $1.25 billion over three years to administer this new program. Terms and conditions will be released in the coming months and the program is expected to be operational by September 2019.

Impact of Mortgage Rate Stress Tests. REALTORS® have been concerned about the mortgage stress test, and our leaders in Ottawa have heard our concerns. The government will continue to monitor the effects of its mortgage finance policies and adjust them if economic conditions warrant. This will ensure Canadians can responsibly access housing while safeguarding the stability of the economy.

Improving Energy Efficiency. To increase energy efficiency for residential and commercial buildings, the government will assign $1.01 billion to the Federation of Canadian Municipalities through the Municipal Green Fund.