|1) Participate in the Home Buyers’ Plan|
Allows you to withdraw funds from your RRSPs to buy or build a qualifying home for yourself or for a related person with a disability. The HBP allows you to pay back the withdrawn funds within a 15-year period. Your RRSP issuer will not withhold tax on withdrawn amounts of $35,000 or less.
2) The First-Time Home Buyer Incentive
The program works by getting an extra 5% or 10% of the down payment of your home and then repaying the Government either 5% or 10% of the property’s market value at the time of repayment. In the case of appreciation, the Incentive amount plus a maximum gain to the Government of 8% per annum.
3) First Time Buyers Property Transfer Tax Exemption
A full exemption to PTT is available for qualified first time buyers purchasing a property under $500,000.
4) Tax Free First Home Savings Account
In 2022, the government proposed the introduction of the Tax-Free First Home Savings Account (FHSA). This new registered plan would give prospective first-time home buyers the ability to save $40,000 on a tax-free basis. Like a Registered Retirement Savings Plan (RRSP), contributions would be tax-deductible, and withdrawals to purchase a first home, like a Tax-Free Savings Account (TFSA).