The Canadian government announced today that 30 year amortizations will be available from August 1, 2024 on INSURED mortgages (below 20% down payment) for First Time Home Buyers who are purchasing a new build.  While existing housing will still be capped at 25 year amortization on the insured side, 30 year amortizations still remain an option for any uninsured mortgages (over 20% down payment / equity in home).

Also announced today was the increase of the RRSP Homebuyers plan which will come into effect on April 16, 2024.  From that date, First Time Homebuyers will be able to withdraw up to $60K from RRSPs to purchase a home (up from the previous $35k withdrawl limit).  First Time Homebuyers will also have a longer grace period before they need to recontribute those RRSPs that they pulled.  Under the previous rules, they would have had to recontribute from the second calendar year after the RRSP pull, now First Time Homebuyers will have 5 years of a grace period.  As a recap, any RRSP amounts that are not repaid according to the Homebuyer plan rules will be added to that individuals income for that tax year (Homebuyer plan is repaid over a 15 year period).