The Conservatives would let first-time buyers take $35,000 from their registered retirement savings plans to pay for homes if they’re re-elected.
Under the Home Buyers’ Plan, new buyers can currently take $25,000 from their registered retirement plans, tax free, to purchase their starter homes. Owners must pay the money back within 15 years of the withdrawal.
Read: Fewer Canadians make RRSP contributions
The Conservatives say skyrocketing home prices in cities such as Toronto and Vancouver are making the increase necessary.
If re-elected, a Conservative government would also collect data on how foreign investors are impacting the Canadian housing market.
Canadian Real Estate Association president Pauline Aunger is pleased with the proposed changes to the HBP.
Read: RRSP contributions left to last minute
“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,” she says. “By reducing or avoiding mortgage default insurance fees and building home equity sooner, Canadians can put their own money to work for them.”
The HBP was introduced by the federal government in 1992. Since its inception, more than 2.8 million Canadian have used the HBP.
A version of this story originally appeared on our sister site, Advisor.ca.
Also read: