Money Street News
  • Please enable News ticker from the theme option Panel to display Post

With the national average home price topping almost $660,000, according to recent figures from the Canadian Real Estate Association, saving for a down payment can be daunting. While the FTHBI is coming to an end, there are alternatives to help Canadians save for that elusive down payment:

RRSP Home Buyers Plan (HBP): This program allows you to withdraw up to $35,000 tax-free from your RRSP for a down payment towards a new or resale home. The funds need to be repaid to your RRSP within 15 years, with repayments starting two years after the initial withdrawal. Otherwise, that scheduled repayment will be considered taxable income for that tax year.

First Home Savings Account (FHSA): Introduced in April 2023, the First Home Savings Account is a registered plan that helps first-time home buyers save for a down payment. Combining the features of an RRSP and a TFSA, contributions are tax-free (up to the plan’s annual and lifetime caps) and the amount withdrawn is not taxable.

In an email to CityNews, the CMHC names the FHSA as a preferred option to the FTHBI: “After a review of federal housing plans in light of the current housing situation, the federal government decided that the First Home Savings Account (FHSA) is a better tool to help first time homebuyers buy a home,” adding that more than 500,000 Canadians are already using the FHSA.

Your municipality or province may also offer assistance programs, such as:

Affordable Home Ownership Program: The Region of Waterloo, Ontario, gives down payment loans of up to 5% towards the purchase of an eligible home, up to $506,000.

Affordable Home Ownership Program: Provides households in Simcoe County, Ontario, with up to 10% down payment assistance (maximum $50,000) in the form of a 20-year forgivable loan.

Accès Condos: Managed by the Société d’habitation et de développement de Montréal (SHDM), this program provides 10% of the down payment required to purchase an Accès Condos accredited condo with only $1,000 down payment.

Down Payment Assistance Program: Assists qualified residents of PEI with an interest-free down payment loan of up to 5% of the purchase price of a home, up to $17,500. (Maximum home purchase price is $350,000.)

Down Payment Assistance Program: This program provides eligible Nova Scotia residents with a down payment loan of up to 5% of the purchase price of a home, to a maximum of $25,000. The loan is interest-free and repayable over 10 years.

Attainable Home Program: Calgary residents with household incomes below $131,424 can access an interest-free down payment loan with only $2,000 down. Similar to the FTHBI, the program administrator is put on the title of the home and a portion of any appreciated value is shared when the home is sold.

Rural Homeownership Program: This program is geared towards prospective home buyers in designated rural communities and provides down payment assistance for households that currently rent a home owned by Manitoba Housing or want to buy a home owned by Manitoba Housing.

And while the First-Time Home Buyers’ Tax Credit doesn’t help with a down payment, a tax rebate of up to $1,500 can help ease the burden of closing costs and legal fees.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

No, thank you. I do not want.
100% secure your website.