How the 2019 federal budget will affect Millennials
In the 2019 Federal Budget, the Canadian government announced changes to make home ownership easier for millennials.
- The interest rate charged on Student Loans and the Canadian Apprentice loan was reduce from prime to 2.50%.
- Graduates will now have no interest accruing on their loans during the 6 months grace period after they leave school.
- The RRSP home buyers plan withdrawal amount for first time home buyers has been increased from $25,000.00 to $35,000.00, and
- For households with income less than $120,000.00, the Canadian Housing and Mortgage Corporation (CMHC) will administer a shared equity program to pay the monthly payments of between five and 10% of their mortgage. This will help to lower out of pocket mortgage payments. Payments of 5% will be for the resale homes and the 10% co payment will be for newly constructed houses.