Maple News reports that Canada’s federal government has rolled out a series of new housing affordability initiatives that could significantly benefit newcomers to the country. Deputy Prime Minister and Finance Minister Chrystia Freeland unveiled the measures on April 11, 2024, as part of the government’s broader plan to support both first-time homebuyers and current homeowners amidst ongoing housing market challenges.
The most notable changes include an increased limit on Home Buyers’ Plan (HBP) withdrawals from Registered Retirement Savings Plans (RRSPs), now set at $60,000, up from the previous $35,000. This allows eligible first-time buyers to use more of their RRSP funds toward the purchase of a home without immediate tax penalties. Additionally, the repayment period for these withdrawals has been extended from 15 to 20 years.
Another key measure is the introduction of 30-year amortization periods for insured mortgages, available to first-time buyers purchasing newly built homes. The extension of the mortgage term aims to reduce monthly payments, allowing more Canadians — including newcomers — to qualify for home loans in high-cost markets.
For newcomers to Canada, especially international students and temporary foreign workers, questions may arise about eligibility in light of the federal ban on residential property purchases by non-citizens and non-permanent residents. Implemented on January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act was recently extended until January 1, 2027. The law restricts the purchase of homes with three or fewer units, including condos and semi-detached properties.
However, this legislation contains notable exceptions. Temporary residents may still qualify to buy property under specific circumstances — such as possessing valid work or study permits and meeting minimum residency or income requirements. Understanding these exemptions is crucial for those planning to build a future in Canada.
Maple News emphasizes that these federal affordability measures — combined with provincial housing initiatives — may present a new window of opportunity for eligible newcomers. Strategic use of RRSPs, access to longer mortgage terms, and awareness of legal exemptions under the foreign buyer ban can significantly enhance a newcomer’s path to homeownership.
As Canada continues to welcome record numbers of immigrants and temporary workers, housing remains a critical focal point. These policies provide practical steps that can ease the financial barriers often faced by newcomers entering the housing market.