Own you first home, way sooner, thanks to this year's tax refund!
You’ve been renting for years. Owning a Home feels like a far-off dream. You scroll through listings on weekends with your partner, picturing the cozy home you’ve always wanted—a place where you can host friends and family, decorate for the holidays, and build a life. But every time you crunch the numbers, that down payment just seems out of reach.
Time to flip the thinking! It’s tax season, and you’ve just received your refund. This time, instead of spending it on something fleeting, you decide to invest it in your future. You discover two powerful financial tools designed to help first-time buyers like you.
The Home Buyers’ Plan (HBP)
You learn that you can withdraw up to $60,000 from your RRSP tax-free to put toward your down payment. For you and your partner, that’s $120,000 combined! Suddenly, the numbers start to feel doable.
The First Home Savings Account (FHSA)
You also hear about the FHSA—a game-changer for aspiring homeowners. With this, you can save up to $8,000 a year tax-free, with a lifetime limit of $40,000. Not only are your contributions tax-deductible, but when it’s time to withdraw those savings to buy your home, it’s tax-free.
The Power of Combining these Programs
Here’s where the magic happens: You decide to use your tax refund to contribute to your FHSA or RRSP. This boosts your tax refund for next year. Then, when you’re ready, you combine the HBP and FHSA, creating a supercharged down payment fund that puts you closer to that dream home.
Real-Life Inspiration
Take Jess & Tyler, for example. They’d been renting for years but were determined to buy their first home. One year, they decided to use their $3,500 tax refund to contribute to their RRSPs and FHSAs. The following year, their boosted refund let them save even more. By combining the HBP and FHSA, they managed to pull together a $160,000 down payment—and today, they’re sipping coffee in a kitchen of their own.
Your Turn to Dream Big
This isn’t just a financial strategy; it’s a blueprint for turning your dream into reality. Why wait another year? Start using your tax refund to invest in your future. That rainy Sunday could turn into a sunny morning in your very own home.
