Dreaming of home ownership but need help saving for a down payment? Between current home prices and inflation, it can feel challenging. But the good news is that first-time homebuyers can use both an FHSA and the HBP to optimize their saving.
An FHSA allows you to contribute up to $8,000 a year, to a lifetime maximum of $40,000. All of this plus any growth from your investments can be used for a down payment. If you’re eligible, the HBP allows you to withdraw up to $35,000 tax-free from your RRSP to buy your first home. You just have to make sure you repay the funds to your RRSP within 15 years.
Depending on how you set your investment goals, combining the money from your FHSA and HBP means you can potentially save $75,000 or more for a down payment. Remember, this is per person. If you and your partner are both eligible, together you can potentially save over $150,000 for your first home.
The key is starting early. The more time you give yourself to save and grow your investments, the easier it will be for you to reach your savings goal. We will make an introduction to an advisor that can help you get on the path to making your homeownership dreams a reality.
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Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at firstname.lastname@example.org or at 604-802-3983.
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