Brokers weigh in on reformed Home Buyers’ plan proposal

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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.”
  • Donna on 2015-09-11 10:52:34 AM

    He'll NEVER get my vote!

  • Jerry Quigley on 2015-09-11 11:02:07 AM

    Canadians already have too much "house" and debt. What they don't have is enough savings for retirement. lets not mess with savings!

  • derek austin on 2015-09-11 11:33:53 AM

    Yes they promise all kinds of things , but what will be the truth once they get in . If you can't teach people the outstanding value of real estate for their future , opening up the use of the RRSP in times of stress means that it won't be there for their future , which was the idea for people that don't buy real estate.

  • Donald Demchuk on 2015-09-11 2:08:22 PM

    If you can't save up the 20% down payment without using your Rrsp your not ready. If disaster strikes, like losing your job, you'll have no safety net and you'll lose the place plus have Rrsp's that you'll owe taxes on.

  • Wayne Campbell, Prince George on 2015-09-11 10:10:27 PM

    Just unabashed vote-buying, and nothing more!

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