Three Overlooked Tools to Save Thousands on Your Home Purchase
Buying a home is one of the biggest financial decisions you’ll ever make, but many buyers miss out on valuable tools that can significantly reduce costs. Whether you’re a first-time buyer or looking to upgrade, these three programs can help you save thousands of dollars and make your dream home more affordable.
1. No Property Transfer Tax on New Construction Up to $1.1 Million
•What it Means: Buyers of newly built homes priced up to $1.1 million in British Columbia can avoid paying the property transfer tax (PTT).
•Why It Matters: The property transfer tax is a significant expense, often overlooked during home purchase planning. Avoiding it can save buyers thousands upfront.
Example:
On a $1 million home, the PTT would normally be $18,000. With this exemption, buyers can redirect those funds toward furnishing their new home, reducing other debts, or boosting their savings.
2. CMHC Eco Plus Program – A 25% Insurance Premium Rebate
•What it Means: Buyers of energy-efficient homes may qualify for a rebate of up to 25% on their CMHC insurance premium which is applied for directly through the insurer.
•Why It Matters: Energy-efficient homes not only lower your insurance premium but also reduce long-term utility costs, making homeownership more affordable in the long run.
Example:
•Purchase Price: $700,000
•Down Payment: $70,000 (10%)
•Mortgage Amount: $630,000
•Insurance Premium (4%): $25,200
•Rebate (25%): $6,300
•Final Insurance Premium Cost: $18,900
This program puts thousands of dollars back into your pocket while promoting sustainability.
3. First Home Savings Account (FHSA)
•What it Means: The FHSA is a powerful savings tool designed for first-time homebuyers. Contributions are tax-deductible, and withdrawals used for purchasing a home are tax-free.
•Why It Matters: It combines the best features of an RRSP and a TFSA, allowing for tax-free growth while helping buyers save for a down payment faster.
Example (Opened in 2025):
•Maximum Contribution: $8,000/year, but if the account is opened in 2025, only three years of contributions can be made, totaling $24,000.
•Potential Growth: Assuming a 5% annual return, the account could grow to approximately $25,300, providing a larger down payment without any tax implications.
•For couples, combining FHSA accounts could allow for up to $50,600 in tax-free savings.
Maximizing Your Home Purchase Plan
These programs—when used strategically—can make a significant difference in your overall affordability.
1.Use the FHSA to grow your down payment.
2.Avoid the property transfer tax by choosing new construction.
3.Save on insurance premiums with the CMHC Eco Plus Program.
Take Advantage of Every Opportunity
Navigating the homebuying process can be overwhelming, but with the right guidance, you can maximize your savings and make more informed decisions. As a mortgage expert, I’m here to help you understand these tools and how to integrate them into your home purchase strategy.
Don’t leave money on the table—let’s build your plan together!
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 hello@countoncalla.ca or at 604-802-3983.
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