We know that buying a home for the first time can be difficult. However, there is some help for you, and we would like to help you navigate the path to home ownership.
First Home Savings Account (FHSA)
Introduced by the federal government in 2023, the FHSA is a registered savings account to help you save $40,000 toward the down payment of your first home. It shares some similarities to RRSPs and TFSAs.
Here are some conditions before you apply:
- Be of legal age according to your province or territory.
- Be 71 or younger by December 31 (the year you open the account).
- Be a Canadian resident.
- Not living in the qualifying home in the same calendar year (or 4 previous years).
What are the benefits?
- Tax-free way to save for your first home.
- Contributions are tax-deductible (or transfer from a RRSP) up to $8,000/year.
- Contributions from any year can be carried forward.
FHSAs are widely available by contacting your bank, credit union, trust or insurance company. You must meet certain criteria, like an RRSP and meet certain withdrawal requirements too.
Our Anne Winch Real Estate Team Tips:
It is so exciting to buy your first home. The anticipation of looking at various homes and imagining living in a place that suits your lifestyle. What we sometimes forget is the other information that we wish we knew before we purchased our first home.
- Don’t borrow the maximum for your mortgage: Don’t use all your savings for a down payment – give yourself room and financial security.
- Use a trusted real estate company: Our Anne Winch Ottawa Real Estate and Home Staging Team can help you with any questions you may have about purchasing a home for the first time.
- Buy for tomorrow: One thing about life is there are always changes down the road.
- Take advantage of any tax credits: You may also be eligible for the GST rebate, home business tax breaks etc.
We hope this information will help you when you buy your first home. Our Team can help negotiate the purchase of your new home with the least amount of stress for you. Give us a call for any of your real estate needs.