The first quarter of 2019 has come to a close and the Liberal government released their proposed Federal Budget. While last year’s budget was cautious in the face of NAFTA negotiations and competitive US corporate tax initiatives, this year’s proposal focuses on maintaining economic growth over the long term and announced strategic social initiatives for individual Canadians rather than corporations. Here we have highlighted some of the key proposals.
Help for Homeowners
The Home Buyers’ Plan allows first-time home buyers to withdraw a tax-free amount from their RRSP to help with the down-payment or other expenses The 2019 Budget proposes to increase the HBP withdrawal limit from $25,000 to $35,000 per individual. The repayment period will remain at 15 years, starting the second year after the withdrawal was made.
CMHC will also help first-time homebuyers by taking up to a 10% stake in newly constructed homes or 5% of an existing home...