I don’t want to get too political, but I’ll just come out and say it. Government is terrible, they all do a bad job, and we would be better off with monkeys throwing feces at each other. (I mean if you have watched the house of commons that is kinda what happens).
Anyway, complaining about government isn’t the point of this post. The Liberal Government in Canada recently released the new 2019 budget and there were some important updates.
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Anyone With Student Loans Get Your Party Hats On
The 2019 budget is set to reduce the interest on federal student loans from prime + 2.5% down to prime. For someone with $100,000 in student debt, this means an annual interest savings of $2,500, that’s a decent amount of ramen and Lucky Lager. (The Government of B.C. recently eliminated interest altogether on B.C. student loans.)
First Time Home Buyers
Basically, if you’re a first time home buyer the Canadian Mortgage and Housing Corp (CMHC) will front you part of your down payment, lowering your monthly mortgage payment beginning sometime this fall. This sum does not need to be repaid until the home is sold. Full details have not yet been released but you do need to have a household income of less than $120,000 a year and the purchase price needs to be less than 4 times your income. This limits the maximum price to roughly $480,000. Good luck anyone in Vancouver or Toronto, you ain’t getting any help.
The Feds also increased the amount you can withdraw tax free from your RRSP for a first time home purchase from $25,000 to $35,000. We are in the FIRE community though so we aren’t going to be plundering our retirement savings just to try and buy a McMansion!
Those of us Trying to Save on Our Gas Bill
There is also an incentive of up to $5,000 for anyone who is buying an electric battery or hydrogen fuel cell vehicle with a purchase price under $45,000. (Who’s paying more than $45,000 for a freaking car?!?!?!) If you’re in the market for a no emission vehicle the government might just be able to help you out.
There were a few other measures of note such as changes to the guaranteed income supplement for seniors but I’m going to say anyone on here who is planning for the future won’t be in need of those services. Remember that while the politicians make slight changes every year to how things work there are only two things in life that are guaranteed: Death and Taxes.