Brokers weigh in on reformed Home Buyers’ plan proposal

A proposal from the Liberal government would allow many more Canadians – not just first-time home buyers – access to their RRSPs to purchase homes.

“Any ability to access funds that could help a buyer increase their down payment amount gives them a great advantage,” Darick Battaglia, a broker with Dominion Lending Centres, told MortgageBrokerNews.ca. “A lot of people are exiting the (stock) market to get into real estate, so this would give them a great opportunity.”

Liberal leader Justin Trudeau has proposed changes to the Home Buyers’ Plan to allow more Canadians access to their RRSPs for home buying purposes. The proposed changes do not, however, include an increase to the maximum allowable RRSP amount Canadians can put forth toward a down payment.

"I think our proposal to extend the capacity to invest — to draw from your RRSPs and responsible amounts to help the cost of a new home — is something that will help Canadians in concrete ways," Trudeau said, according to the CBC. "The reality is that too many Canadians cannot afford to buy a house."

The changes will focus on allowing Canadians who experience significant life events access to RRSP funds to purchase homes.

“We will modernize the existing Home Buyers’ Plan so that it helps more Canadians finance the purchase of a home,” the Liberal housing policy reads. “We will allow Canadians impacted by sudden and significant life changes, such as job relocation, the death of a spouse, marital breakdown, or a decision to accommodate an elderly family member, to access the program and use money from their Registered Retirement Savings Plan to buy a house without tax penalty.”

MBN