New 30-Year Amortizations for Insured Mortgages

Effective August 1, 2024, the government will allow 30-year mortgage amortizations for first-time homeowners who purchase newly built homes.  For existing mortgage holders who meet specific criteria, “permanent amortization relief” will be available to extend repayment periods for as long as they need to get to the number they can afford to pay monthly. It’s an extension from the 25-year mortgage amortizations previously allowed. However, this isn’t for everyone… there is a significant risk to lifetime wealth creation and must be managed with an eye to interest rates and payment terms to reduce the non-deductible interest costs.  

In deciding which of the two tax preferred investment vehicles should be used for various lifecycle purposes – the TFSA or the RRSP - advisors and their clients should carefully consider all the advantages of investing in and withdrawing from each vehicle.

What should you do with your RRIF withdrawals once you’ve generated the tax with the funds?  

Have you alerted your clients about the changes in the eligibility for the increased UCCB benefits?

Recent changes to RRIF withdrawal rules are in the spotlight since the April 21, 2015 federal budget.  Will they affect pension income splitting, and if so, how? 

Small businesses employ half of all Canadian workers in the private sector; making sure these employers can continue to provide jobs is critical. 

Despite political controversy, the TFSA has gained broad-based acceptance by 40% or 11 million average Canadians.