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.

 

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