Saving for a home or helping a child
Whether you're buying your first home or supporting your child with theirs, having a clear savings strategy can make a big difference. It's not just about building a down payment - it's also about choosing the right account to grow your money efficiently and minimize tax.
In Canada, there are a few key account types that can support homeownership goals:
First Home Savings Account (FHSA)
Tax Free Savings Account (TFSA)
RRSP Home Buyers' Plan (HBP)
Non-Registered Investment Accounts
Summary of Options (including gifting and lending strategies)
The FHSA combines the benefits of both TFSAs and RRSPs, offering tax-deductible contributions and tax-free withdrawals for first-time home purchases. Meanwhile, RRSPs can be tapped through the Home Buyers' Plan, and TFSAs offer flexible, tax-free growth with no repayment obligations.
If you're a parent looking to help, choosing how to give - and from which account - can have important tax, estate, and legal implications. Structuring your support wisely can protect your own retirement while still giving your child a strong financial start.
Please contact us if you'd like some customized guidance or a second opinion on which savings account or gifting plan aligns best with your family's homeownership goals.
