The Home Buyers' Plan allows a tax-free RRSP withdrawal of up to $60,000 per person toward a down payment, repaid over 15 years. The First Home Savings Account allows contributions of up to $8,000 a year to a $40,000 lifetime limit, deductible going in and tax free coming out. CMHC, Sagen and Canada Guaranty insure mortgages with less than 20 percent down, and Saskatchewan charges provincial sales tax on that insurance premium at closing.
Both tax credits arrive as a refund the following spring rather than cash available at closing, which catches some first-time buyers off guard when budgeting for legal fees of $800 to $1,500 and a home inspection at $400 to $600.
With the citywide benchmark at $444,700, Joel Dyck helps first-time buyers map which programs stack together and when the money actually lands. Get your hand-reviewed valuation from Joel Dyck.