Home Purchase Planning

Buying a home is one of the most significant financial decisions you'll make in your lifetime. As your dedicated advisor, I am here to guide you through the process and help you make informed decisions about saving for your home purchase and maintaining a good credit history.  Our home purchase planning services guide you through the entire process of preparing to buy a home.  We provide the knowledge and support to make your dream home a reality, ensuring a smooth and stress-free experience.

Savings Programs for Home Purchase in Canada

Home Buyers' Plan (HBP)

HBP is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a specified disabled person.  Currently the HBP withdrawal limit is $35,000 and funds withdrawn under the HBP must be repaid to their RRSP over a 15-year period. At least 1/15 of your withdrawal must be repaid to your RRSP each year. The repayment period began as of the second year after the first withdrawal was made.

Update:  To address the shortage of housing options, high rent prices and consistently increasing home values across the country, the 2024 budget proposes that Canadians could withdraw as much as $60,000 from their RRSP, thus, a couple purchasing a home together would be able to withdraw up to $120,000 from their RRSPs to purchase a new home. The budget proposes to temporarily defer the start of this repayment period by an additional three years. So, for anyone making their first withdrawal between January 1, 2022 and December 31, 2025, they would have five years before repayment must begin.

First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive was a shared-equity mortgage with the Government of Canada, which offered 5 or 10% of the home’s purchase price to put toward a down payment, this program was launched in 2019 to help make homeownership more affordable for qualifying first- time buyers.   The shared equity component of the incentive means that the government shares in both the upside and downside of the property value, up to a maximum gain or loss equal to 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment. 

Update: The First-Time Home Buyer Incentive is no longer accepting applications. The deadline for new submissions for the First-Time Home Buyer Incentive was March 21, 2024.

First Home Savings Account (FHSA)

FHSA is a type of registered savings plan introduced by the federal government in 2022. An FHSA is designed to help you save for your first home, tax-free and help you reach your vision of owning a home faster.  An FHSA combines some of the features of an RRSP and TFSA. Contributions will generally be tax-deductible, and when a qualifying withdrawal is made, the amount withdrawn is not taxable.  Annual contributions are capped at $8,000 up to a $40,000 lifetime contribution limit.  With an FHSA, eligible withdrawals do not need to be paid back. 

As your advisor, I will work closely with you to develop a personalized home purchase plan. Because we understand credit history and score play a critical role in the home buying process, aside from helping you save for your downpayment, we will also provide you tips and recommend strategies to help you build a strong credit history, whether you’re starting from scratch or looking to improve your existing score. Together, we will explore the best savings programs and strategies to help you achieve your dream of homeownership while maintaining a strong credit profile.

Ready to start planning for your home purchase? Contact me today for a personalized consultation. Let’s work together to develop a comprehensive plan to make your home buying journey smooth and successful.
Building your future, one home at a time.