Down Payment Options
Available savings tools for First Time Buyer’s
Exploring Your Down Payment Options:
Making Homeownership Easier
Dreaming of owning your first home? One crucial aspect to consider is your down payment. Let’s dive into some options that might just help you unlock the doors to your dream home:
1. RRSP Home Buyers Plan:
The Canadian Government’s Home Buyer’s Plan (HBP) is your ally if you’re a first-time homebuyer. You can dip into your RRSP for up to $35,000 (or $70,000 if buying with another first-timer) for a tax-free down payment. Remember, this is a loan that needs to be repaid within 15 years. To be eligible, you must meet certain criteria like having the funds in your RRSP for at least 90 days, not having owned a home in the past four years and agreeing to live in the home as your primary residence.
2. First Home Savings Account (FHSA):
Imagine saving with tax benefits! FHSA allows you to deposit up to $8,000 annually and up to $40,000 in your lifetime. Your contributions are tax-deductible, and you can invest these funds in various avenues like mutual funds, stocks, and bonds. When you’re ready to buy your first home, you can make a tax-free withdrawal from your FHSA to fund your down payment or closing costs. Just ensure you meet the criteria for a qualifying withdrawal.
These options can make your homeownership journey more accessible and manageable. Remember, every situation is unique so feel free to reach out if you have any questions or if you’re ready to explore these down payment avenues further. We’re here to guide you toward your homeownership goals.
