Opportunities for First-Time Home Buyers
If you’ve been thinking about buying your first home, there’s been no shortage of headlines lately —new programs, changing rules, and shifting affordability.
But from our perspective, the real story isn’t just that there are more incentives available. It’s that there are now more planning opportunities—if they’re used thoughtfully.
This is one of those moments where the decisions you make before buying can have a meaningful impact on your long-term financial picture.
More Tools Than Ever—But Strategy Matters
Over the past few years, several programs have been introduced or enhanced to support first-time buyers. On their own, each one is helpful. But the real value comes from how they work together.
For example:
- The First Home Savings Account (FHSA) allows you to contribute up to $8,000 per year (to a $40,000 lifetime maximum), with a tax deduction today and tax-free withdrawals when used for a home purchase
- The Home Buyers’ Plan (HBP) allows you to withdraw funds from your RRSP, with up to 15 years to repay those amounts
- Recent updates to mortgage rules (30-year amortization) and federal incentives (including GST rebates on qualifying new homes) have expanded what’s possible for many buyers
GST Rebate: If you're a first-time home buyer purchasing a qualifying newly built or substantially renovated home priced under $1 million, the federal 5% GST (or the federal portion of HST) is fully rebated. That's a savings of up to $50,000. Partial rebates are available for homes up to $1.5 million.
A well-structured plan might involve:
- Building savings in an FHSA early to take advantage of tax deductions and compound growth
- Coordinating RRSP contributions and withdrawals under the HBP
- Aligning both with your expected purchase timeline and income levels
When used together, these tools can significantly increase your available down payment—often in a more tax-efficient way than many people realize.
The Down Payment Is Only Part of the Equation
It’s easy to focus on how to maximize your down payment. And while that’s important, it’s only one piece of the puzzle.
Equally important is what your financial life looks like after you’ve bought the home.
Questions we often explore with clients include:
- How will your monthly cash flow change once you take on a mortgage?
- Are you still able to save for retirement and other long-term goals?
- Do you have sufficient flexibility if interest rates or personal circumstances change?
- How will HBP repayments fit into your future savings plan?
Just because programs allow you to access more funds—or qualify for a higher purchase price—doesn’t always mean it’s the right decision for your broader plan.
A Thoughtful Approach Matters More Than Ever
There’s no question that the current environment offers more flexibility and more opportunity for first-time buyers than in the past. But more options also mean more complexity. That’s why we believe this is less about whether you should buy, and more about how you prepare for it.
We see decisions like buying your first home as part of a much bigger financial picture. If you’re starting to think about what that might look like for you, we can help.
Reach out to ask us for our First-Home Savings Guide, Homebuyer's Plan FAQ and other valuable tools.
This information has been prepared by Jessica Perry, Wealth Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this email comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operates.
