Hopkins noted that virtually every aspect of
the proposal has resulted from extensive consultation with industry members,
financial institutions, consumers and the government. In particular, it responds
to criteria laid out for the Canadian Association by senior officials in the

Department of Finance. Some of its highlights follow:

the program should be geared to first-time home buyers;

there should be a ceiling on the percent of equity owned by the
RRSP;

major renovations after purchase should enhance the property
value by at least five percent before the RRSP share is also
enhanced; saunas, pools and jacuzzis would not qualify;
independent appraisals would be required to establish fair market
value prior to purchase, following major renovations and on
repayment of the RRSP;

those saving for a home-equity RRSP would likely use a "barik
deposit" type of RRSP for flexible market entry;

program users should be encouraged to pay back their RRSP as

quickly as possible but flexible repayment options should be

available to fit the purchaser's future financial circumstances.