Press Release: Federal budget focuses on first-time home buyers

Halifax, Nova Scotia – Today’s federal budget announcement of shared equity for insured mortgages is a “game-changer” for first-time home buyers. According to Clinton Wilkins, Senior Mortgage Advisor with Centum Home Lenders Ltd. The change will mean lowered borrowing costs for those seeking their first mortgage. The Canada Mortgage Housing Corporation (CMHC) shared equity program will cover 10 per cent for new construction homes and 5% for resale properties. The federal government also plans to increase the limit of the RRSP Home Buyers’ Plan. An increase from $25,000 to $35,000 for first-time home buyers ($70,000 per couple).

Federal budget improvements

“The CMHC Shared Equity Program will help make buying a home more affordable for first time home buyers,” said Wilkins. “Buying a home is likely the largest investment you will ever make. The current down payment often requires first time home buyers to secure a 5% down payment. Therefore, increasing payments and making homeownership more challenging for first-time homebuyers in Atlantic Canada.”

Halifax market

Higher mortgage rates and a slower economy are to blame for fewer housing starts in February 2019. According to data from the CMHC. Additionally, the CMHC said the seasonally adjusted annual rate of housing starts fell to 173,153 units in February. This figure is compared with 206,809 units the month before. Sales of existing homes are also on the decline. Earlier this month, the Canadian Real Estate Association reported home sales posted their weakest January since 2015.

“I’m pleased to see the Government taking action to reverse this trend in the federal budget,” said Wilkins. “Homeownership is part of the Canadian dream. These measures will give Maritimers priced out of the housing market a foot in the door”.

About Clinton Wilkins

Clinton is one of Atlantic Canada’s top mortgage professionals. Clinton holds a Bachelor of Commerce from Saint Mary’s University, as well as a Certificate in Human Resources. In 2018, Clinton was awarded the Canadian Mortgage Awards “Broker of the Year” (under 25 employees). He is also the author of “Confessions of a Halifax Mortgage Broker”. An easy to read guide to common challenges facing homebuyers in today’s real estate market and how to overcome them.

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For media inquiries, please contact:
Clinton Wilkins
Centum Home Lenders Ltd.
902.482.2770
clinton@teamclinton.ca