Recently, the Canadian Real Estate Association (CREA) has stated that by the end of this year, they anticipate a 4.8% drop in the national average price of a home. This percentage drop is measured in relation to the average home price. The cost of purchasing a home will decrease for all Canadians, including recent immigrants.
Buying Home as Newcomers and Permanent Residents in Canada – FHSAs
A new tax-free First House Savings Account (FHSA) is created by the Canadian government. It is discovered to be Canada’s most recent endeavour to promote housing affordability in this nation.
The account will now make it simpler for immigrants across the nation to save money for their first house. Financial institutions in Canada are now permitted to provide a new category of savings account to qualified Canadian citizens and permanent residents as of April 1. The account holder must be a Canadian resident over the age of 17 who is intending to buy their first home in order to qualify for an FHSA.
Holders of an FHSA must maintain the account open until the first of the following circumstances occurs:
- Till the end of the year in which they turn 71;
- Until the end of the year in which they make a qualifying withdrawal from the FHSA for the purchase of their first house, and;
- 15 years have passed since the account was initially opened.
First-Time Homebuyer Benefits Offered to Canadians
First-Time Home Buyer Incentive
The FTHBI provides eligible Canadians with 5 % or 10% of the home’s purchase price to utilise as a down payment. This incentive lowers mortgage carrying costs by increasing a down payment, making house ownership more affordable.
Home Buyers’ Plan
First-time homebuyers can withdraw up to $35,000 tax-free from their RRSP to invest towards their first house if they are purchasing or developing an eligible home in Canada. Additionally, the HBP has a 15-year payback window.
Provincial Grants and Incentives
There are many grants and incentives that are available to first-time homebuyers in different provinces/territories across Canada.
- British Columbia’s First-Time Home Buyers’ Program
- Ontario’s Land Transfer Tax Refunds for First-Time Homebuyers
- Nova Scotia’s First-Time Home Buyers’ Rebate Program