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The Canadian Real Estate Association (CREA) welcomes Leader of the Liberal Party of Canada Justin Trudeau’s campaign promise to modernize the Home Buyer’s Plan (HBP), if elected, by enabling Canadians impacted by significant life changes to access the program and use money from their Registered Retirement Savings Plan (RRSPs) to buy a house without tax penalty.

The HBP is a REALTOR®-driven initiative, introduced by the government as a short-term stimulus measure in 1992 and made a permanent program in 1994. Since its inception, over 2.8 million Canadian have used the HBP to help make home ownership more affordable. The program allows Canadians to borrow, on a repayable basis, from their own Registered Retirement Savings Plans (RRSPs) to purchase a home.

Expanding the HBP to help Canadians maintain homeownership after a significant life change, such as job relocation, the death of a spouse, marital breakdown, or a decision to accommodate an elderly family member, has been a REALTOR® Action Issue since 2011.

Home purchases involving the HBP generate spin-off spending and create jobs. In 2015, home purchases involving the use of the HBP are projected to result in over $2.8 billion in spin-off spending and more than 19,900 jobs.

For more information on the Liberal Party of Canada’s announcement, please review the Affordable Housing for Canadians backgrounder on the party’s website.

For more information on CREA’s proposal on this topic, please review our Support Canadian Workers Through Job Relocation infographic on REALTOR Link®.

Ottawa, ON, August 12, 2015 – The Canadian Real Estate Association (CREA), on behalf of its 110,000 REALTOR® members across the country, welcomes today’s announcement by Prime Minister Stephen Harper to increase the Home Buyers’ Plan (HBP) withdrawal limit from $25,000 to $35,000.

“The Home Buyers’ Plan has helped so many Canadian families realize their dream of home ownership,” said CREA President Pauline Aunger. “Today’s commitment to increase the withdrawal limit of the HBP will ensure that the dream stays within reach for today’s young people.”

The HBP was championed by REALTORS®, and introduced by government in 1992. Since its inception, over 2.8 million Canadian have used the HBP to help make home ownership more affordable. The program allows Canadians to borrow, on a repayable basis, from their own Registered Retirement Savings Plans (RRSPs) to purchase a home. The HBP is a unique program in that it provides first time home buyers a means to build home equity and save for retirement at the same time. However, the purchasing power of the HBP has been eroded by inflation.

“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,” Aunger stated. “By reducing or avoiding mortgage default insurance fees and building home equity sooner, Canadians can put their own money to work for them.”

Home purchases involving the HBP generate spin-off spending and create jobs. In 2015, home purchases involving the use of the HBP are projected to result in over $2.8 billion in spin-off spending and more than 19,900 jobs.

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