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Canada Announces 30-Year Mortgage Amortization and Increased RRSP Withdrawal Limits to Address Housing Challenges

In a concerted effort to confront the mounting hurdles preventing young Canadians from achieving homeownership, the Department of Finance Canada has unveiled a strategic blueprint within Budget 2024. At the forefront of this initiative are pivotal measures aimed at bolstering accessibility to homeownership, notably through the introduction of a 30-year mortgage amortization option and a substantial increase in the Home Buyers’ Plan (HBP) withdrawal limits.

Effective August 1, 2024, Budget 2024 introduces the option for first-time homebuyers to opt for a 30-year mortgage amortization period. This extension aims to alleviate the financial strain on prospective homeowners, particularly in regions with soaring real estate prices like the Greater Toronto Area (GTA). By spreading out mortgage payments over a longer duration, the measure seeks to make monthly payments more affordable, thereby opening up homeownership opportunities to a broader demographic.

Simultaneously, Budget 2024 proposes a substantial increase in the Home Buyers’ Plan (HBP) withdrawal limits, raising the threshold from $35,000 to $60,000. This enhancement allows first-time buyers to leverage their Registered Retirement Savings Plans (RRSPs) more effectively towards their down payment, acknowledging the escalating demands of the housing market. Minister Chrystia Freeland emphasized the importance of this adjustment in recognizing the evolving landscape of homeownership and the financial challenges faced by aspiring homeowners.

In addition to these pivotal measures, Budget 2024 introduces a range of complementary initiatives to address housing affordability comprehensively:

  • Tax-Free First Home Savings Account (FHSA): Designed to complement the HBP, the FHSA provides Canadians with an additional avenue to accumulate funds for their first home. Since its inception, over 750,000 Canadians have opened FHSA accounts, underscoring its potential impact in bolstering homeownership aspirations.
  • Permanent Amortization Relief: Enhancements to the Canadian Mortgage Charter will offer permanent amortization relief to eligible homeowners, allowing them to tailor their mortgage payments to their financial circumstances. This measure aims to provide stability and support to existing homeowners facing financial challenges.
  • Extension of Repayment Grace Period for HBP Withdrawals: First-time homebuyers who withdrew from the HBP between January 1, 2022, and December 31, 2025, will benefit from an extended repayment grace period of three years. This extension provides them with additional flexibility in managing their finances, particularly during the critical early stages of homeownership.

These comprehensive measures underscore the government’s commitment to fostering a more inclusive and sustainable housing market, where homeownership is within reach for all Canadians. By addressing both demand-side and supply-side factors, Budget 2024 aims to create a more accessible and equitable housing landscape, empowering young Canadians and supporting their aspirations for homeownership.


Budget 2024’s holistic approach to housing affordability reflects a significant step forward in addressing the pressing challenges faced by young Canadians. By introducing a range of measures that target both demand-side and supply-side factors, the government is laying the groundwork for a more inclusive and sustainable housing market.

However, while these initiatives are commendable, it’s essential to recognize that addressing housing affordability requires ongoing collaboration and innovation across various sectors. Continued dialogue between government, industry stakeholders, and community organizations will be vital in shaping policies that foster long-term affordability and accessibility in the Canadian housing market.

Alwin Marshall-Squire

Alwin Marshall-Squire is the Editor-in-Chief of GTA Today and serves as the Parliament Hill Reporter covering Prime Minister Justin Trudeau and his cabinet. With a commitment to accurate and timely news coverage, Marshall-Squire brings depth and insight to the forefront of Canadian journalism. For feedback, reach out at

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