For first time home buyers coming up with a down payment for a house can be a challenge.  A great way to start saving for this is through RRSPs.  It’s not too late to start.  The deadline for 2016 is March 01, 2017. 

Start Early

Starting as early as possible is best.  Even if you are not thinking about RRSPs in your early 20s, it’s a good time to start.  You are likely to have more disposable income in your 20s. 

Automate

Automating your RRSP contribution is a good way to make it easy and more manageable.  Rather than having to worry about coming up with a large lump sum at the end of the year.  The money can add up fast and it’s fun to watch it grow! 

Home Buyers Plan

The Home Buyers Plan is a program that allows first time home buyers to withdraw up to $25 000 in a calendar year from their RRSP toward their first home TAX FREE.  If purchasing a home with a spouse, provided they are also a first time home buyer, they can also withdraw up to $25 000. 

www.cra-arc.gc.ca/hbp/

Financial Advisor

Meet with someone a professional to discuss your options.  Banks are not the only ones that can advise about RRSPs.  Our family uses Brian Moist with Edward Jones in Surrey.  

Often your first home is not your “dream home” but the path that’s leads you to your dream home. 

Author of "The Automatic Millionaire," David Bach writes:

"As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!"

The BC Government has many programs to help with this process. 

1.    First Time Home Buyers' Program

The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home.

http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers

2.    Home Buyers' Plan

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a home.  

• http://www.cra-arc.gc.ca/hbp/

 3.    B.C. Home Owner Mortgage and Equity partnership

Through the B.C. HOME Partnership program, the Province is helping first-time home buyers by contributing to the amount they have already saved for a down payment with a loan that is interest-free and payment-free for the first five years.

Here is how it works:

• The B.C. HOME Partnership program will meet the buyer’s contribution up to 5% of the home’s purchase price, to a maximum purchase price of $750,000.
• After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.
• Loans through the program become due after 25 years – the same length as most mortgages.

• https://housingaction.gov.bc.ca/tile/home-owner-mortgage-and-equity-partnership/

Don't be discouraged about buying or selling a home in the winter.  Any winter woes can be easily avoided.  There are serious buyers during this time of year, and typically less inventory make for ideal selling conditions.  Winter is a great time to play up your home's cozy, family charm.