Plan aims to help young people buy a home

The housing market has changed a lot in recent years, making it more difficult for young people to enter the world of homeownership.

The Ontario government is now looking to help those saving for their first home. The Ford government is expanding deposit insurance to credit unions for members that have a first home savings account.

Grant Galloway, a financial planner with Your Neighbourhood Credit Union, welcomed the move.

“I think this is the best thing that has been brought out since the tax-free savings account,” Galloway said.

“The program is really designed to (encourage) young people or even first-time buyers to save this money over a five-year period.”

The housing market remains difficult to break into, and first-time home buyers are often told to save more than they expect will be needed for their dream house.

Tiffany Rogers, president of the Sault Ste. Marie Real Estate Board, said the market has cooled but is still strong.

“It’s quieted down a little bit, but with low inventory in the market there is still a possibility that they could run into a bidding war,” Rogers said.

For young people, there is concern that being able to afford a home when they feel ready won’t be realistic.

“I know that prices are going up and times are changing so it’s something that is a fear for me,” one person told CTV News.

Support from the provincial government does bring reassurance to the home buyers of tomorrow.

“That’s really good that they’re trying to help young people, especially like, for me, it’s something to look into for the near future, and not getting taxed on it. So I know the money I save is my money.”

The government’s new program hasn’t been officially launched just yet. The financial expert encourages all young people to inquire about it.

He said if a person isn’t able to find a house after the five-year period, their savings can be transferred to a Registered Retirement Savings Plan.