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First-time home buyers: what you need to know

Are you familiar with the various home buyers’ programs?

Between home prices, mortgage rates and the costs associated with buying a home, the dream of becoming a homeowner may seem out of reach for potential first-time buyers. Fortunately, there are a number of different government programs in place to help make your project a reality.

Which program is right for you? Did you know that the FHSA and HBP can be combined? It’s time for you to start planning the purchase of your first home. Contact your bank to learn more.

FHSA

Tax-Free First Home Savings Account

HBP

Home Buyers’ Plan

30-year mortgage

30-year mortgage for new constructions

Tax-Free First Home Savings Account - FHSA

In effect since April 1, 2023, the Tax-Free First Home Savings Account (FHSA) is a registered plan that allows you, if you’re a first-time home buyer, to save to buy or build a first home tax-free.

An FHSA combines the advantages of an RRSP and TFSA. This new product allows to you to contribute an annual tax-deductible amount of $8,000 toward the down payment of a first home.

Why is an FHSA so appealing? Contributing to an FHSA entitles you to a tax deduction (like an RRSP) and the return is tax-free. An FHSA can also be combined with the Home Buyers’ Plan (HBP). Contact your bank to learn more.

A few facts about FHSAs

Don’t forget the Home Buyers’ Plan (HBP)!

The HBP is also applicable when you buy your first home. In the federal budget of April 16, 2024, the program was expanded, and the maximum withdrawal from your RRSP was increased to $60,000. One more reason to become a homeowner now!

What to know about the HBP:

NEW – 30-year mortgage

Discover a new opportunity for first-time new home owners

As of August 1, 2024, the federal government will authorize a 30-year amortization for insured mortgages, offering home buyers the opportunity to repay their loan over an extended period. This measure applies to newly-built homes, including condos, semi-detached homes and row houses.

With 30 years to repay their loan rather than 25, buyers can significantly reduce their monthly payments. It’s a unique opportunity for more young people to fulfil their dream of owning a new home, while more easily managing their budget.

Don’t miss out on these favourable conditions and the chance to make your real estate projects a reality. Feel free to contact our sales teams or your bank for more information.

Happy planning!

30-year term

For first-time buyers only

Lower monthly payments

New home buyer incentive - home purchase grant program

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