First Time Home Buyer Updates 2024

Hey there, savvy young Canadian! Ready to embark on the thrilling journey of homeownership? Congratulations on taking this monumental step toward securing your future! One of the most challenging parts of purchasing a home is saving your down payment, and we know it isn’t easy, here are some tools to assist you with your down payment savings plan!

First Home Savings Account (FHSA)

Let's kick things off with the FHSA – your secret weapon for amassing funds for that dream abode:

Tax-Smart Savings: Picture the FHSA as your personal vault for home savings. Anything you squirrel away in there stays tax-free, including any gains on your savings. Now, that's what we call a financial fortress!

Budget-Friendly Contributions: You can stash up to $8,000 annually into your FHSA without attracting taxes. Plus, there's a lifetime cap of $40,000, so you can turbocharge your home savings game without worrying about tax implications!

Withdrawal Flexibility: When the moment arrives to claim your dream home, you can withdraw your FHSA savings tax-free to use as your down payment or cover other home-related expenses. It's like having your own personal piggy bank for grown-ups!

Open your FHSA easily at your favorite financial institution, and don’t forget to set an automatic monthly or bi-weekly contribution

First Home Savings Account (FHSA) - Canada.ca

Home Buyers' Plan (HBP)

The Home Buyers' Plan (HBP) has been around forever so you may have already started saving for your down payment using your RRSP

Tap Into Your RRSP: You can dip into your Registered Retirement Savings Plan (RRSP) and liberate up to $60,000 (or $120,000 for couples) for your inaugural home purchase. It's like a treasure hunt, but entirely above board!

Tax-Free Plundering: The cherry on top? There are no tax repercussions for executing this move – as long as you repay what you borrowed back into your RRSP within 15 years. Talk about a financial coup!

Flexible Repayment Terms: Rest easy knowing you've got ample time to repay the booty. The repayment schedule is as easy as pie, with just a modest sum due each year. It's like settling a debt, but without the hair-raising interest rates!

If you haven’t already, open your RRSP with your favorite financial institution and don't’ forget to set those automatic contributions.

The Home Buyers' Plan - Canada.ca

Tax Deductions for Young Home Buyers

And let's not overlook those tantalizing tax deductions waiting for us to claim:

Tax Credit Bonanza: As a fledgling home buyer, you can pocket up to $5,000 in tax credits to help offset those pesky closing costs. It's like hitting the jackpot for successfully adulting!

Accessibility Advantages: If you or a household member has accessibility needs, you may qualify for a tax deduction on home improvements. It's akin to receiving a helping hand in crafting your dream abode!

First-Time Home Buyers’ Tax Credit (HBTC) - Canada.ca

Ready to Take the Plunge?

There you have it – Armed with tools like the FHSA and HBP, alongside those enticing tax perks, owning your first home is well within reach if you plan ahead and start saving early.

Remember, it's natural to feel a tad overwhelmed. Take your time, conduct thorough research, and don't hesitate to contact us for assistance with your plan.