Easy access to the property
People who want to buy a first home are entitled to assistance:
A new incentive will allow qualified first-time homebuyers to obtain a participating loan from the Canada Mortgage and Housing Corporation (CMHC). By giving CMHC an interest in the house’s value, the buyer will have lower payments. He will be able to repay this loan once the home is sold. Details on this will be provided later this year.
The maximum registered retirement savings plan (RRSP) withdrawal for purchasing a first home will increase from $25,000 to $35,000.
Training for workers
The world of work is changing, and Canadian workers in need of upskilling will get assistance through the Canada Training Benefit. This program provides a non-taxable credit of $250 per year (lifetime limit of $5,000) to cover up to half of the cost of courses or registration in a training program. To be eligible, a worker must be between 25 and 64 and earn less than $150,000 annually. Through the employment insurance program, the government also proposes to pay up to four weeks of benefits to people who are absent from work to take training.
Help for retirees
The budget proposes to clarify the legislation on pension plans to provide better protection to retirees whose former employer ceases operations and terminates the procedures in place. Another planned measure is the automatic application for CPP benefits for people aged 70 or over who have not yet applied.
Low-income Canadians will also get help. The GIS can increase the income of Canadian retirees who receive less than $18,240 (single people) or $24,096 (couples) per year. The budget plans to increase the amount of the annual exemption for the GIS from $3,500 to $5,000 and apply this exemption to both self-employment income and employment income.
Foundations for building national pharmacare
In preparation for the potential establishment of a national pharmacare plan, the government proposes creating the Canadian Medicines Agency. This agency will negotiate the price of prescription drugs on behalf of the provinces and territories. In addition, work will begin to develop a national drug formulary, which lists prescription drugs covered by a plan. The government also plans to allocate $500 million a year to a strategy to help Canadians pay for drugs to treat rare diseases, which are particularly expensive.
The Advisory Council’s final report will be available later this spring.
Do you dream of becoming a homeowner? The budget provides an incentive and other incentives for those saving to make their dream a reality. For help with the process, talk to your advisor or find one near you.
