The Canadian Real Estate Association (CREA) has indicated that they expect the average price of a home across Canada to decrease by 4.8% by the end of this year.
This percentage decrease is compared to the average price of a home at the end of 2022.
Based on the CREA’s projections, the process of buying a home will become more affordable for all Canadians, including new immigrants just arriving in this country.
More about buying a home in Canada as a newcomer/permanent resident: FHSAs
A recent move by the Canadian government will now make it easier for newcomers across the country to save up for their first home, thanks to a new tax-free First Home Savings Account (FHSA).
As of April 1 this year, Canadian financial institutions are now able to offer a new kind of savings account to eligible Canadian citizens and permanent residents.
To be eligible for an FHSA, the account holder must be a Canadian resident over the age of 17 that is looking to purchase their first home. FHSA holders are required to keep the account open until the first of these conditions is met:
- 15 years have passed since opening the account
- Until the end of the year when they turn 71
- Until the end of the year following the year when they make “a qualifying withdrawal [from the] FHSA” for the purchase of their first home
- The FHSA is Canada’s newest effort to increase the affordability of housing in this country. By giving first-time home buyers the ability to accumulate $40,000 in tax-free savings (max. $8,000 per year for five years), the government is hoping that this will aid Canadians in their efforts to save for a down payment on the home.
In fact, the government estimates project that the FHSA will provide $725 million in support over the coming five years. FHSA contributions will be tax-deductible and withdrawals for the purchase of a first home will be non-taxable
Note: FHSA contributions will be tax-deductible and withdrawals for the purchase of a first home will be non-taxable.
