If re-elected, the Conservatives say they will increase the Home Buyers' Plan (HBP) withdrawal limit.
On Aug. 12, Prime Minister Stephen Harper announced plans to increase the maximum allowable HBP withdrawal from $25,000 to $35,000.
In response to suggestions that speculative foreign buyers are driving up the cost of real estate, the government also plans to collect data on buyer activity in the Canadian housing market. "We will take action in coordination with provinces, as necessary, to ensure foreign investment in Canada’s housing sector increases the availability and affordability of homes for Canadians," said Harper.
The Canadian Real Estate Association (CREA) welcomed the prospect of a higher HBP withdrawal limit, saying it will help more people gain a toehold in the housing market.
"Maintaining the value of the HBP by increasing withdrawal limits is critical. In my own real estate business I have seen so many hard working families and first-time home buyers use this program to build a more secure financial future for themselves," comments CREA president Pauline Aunger. "By reducing or avoiding mortgage default insurance fees and building home equity sooner, Canadians can put their own money to work for them."