New Policies Aim to Increase Home Ownership Affordability for Eligible Newcomers to Canada

In recent years, the Canadian government has implemented several policies aimed at making home ownership more affordable for eligible newcomers to the country. These initiatives are designed to help newcomers settle and integrate into Canadian society by providing them with opportunities to own their own homes. One such policy is the First-Time Home Buyer Incentive (FTHBI), introduced by the federal government in 2019. The FTHBI allows eligible first-time home buyers to finance a portion of their home purchase through a shared equity mortgage with the government. This reduces the amount of money required for a down payment, making home ownership more accessible.

Additionally, several provinces offer programs specifically tailored to assist newcomers in purchasing a home. For example, the Ontario Newcomer Rebate provides a rebate on the Ontario Land Transfer Tax for eligible newcomers who have recently purchased a home in the province. Similarly, the British Columbia Newcomer Tax Rebate offers a rebate on the property transfer tax for eligible newcomers in British Columbia.

Furthermore, changes to mortgage rules and regulations have also made it easier for newcomers to qualify for a mortgage. In 2020, the federal government increased the maximum mortgage amount that a borrower can obtain under the insured mortgage purchase program. This change allows newcomers with limited funds to purchase a home with a smaller down payment.

Overall, these policies and initiatives aim to address the challenges that newcomers face in accessing affordable housing in Canada. By providing financial assistance and reducing barriers to home ownership, the government hopes to promote the economic integration and success of newcomers in their new country.