I’m planning on putting my first down payment in my first house/condo next year, where should I save my money in the mean time?
Can’t an RSP give you the ability to take out money for a first home buyer tax free? And also to put a down payment at 5% (as long as it isn’t over $500k or something)
Any info would really help, THANK YOU
Hey Cameron. So Tfsa is always great. RRSP will give you tax savings, but will give you access to the RRSP first time home buyer! But you have to pay back over the year.
If it were me, for simplicity sake I’d do TFSA savings in the mean time. One less thing to do after buying your first place. But If you make good money, it would give you tax savings this year.
And to your point yes 5% on first $500,000, 10% on the remainder amount is minimum down payment as per cmhc guidelines
Hi Cameron, I agree with Tyler, TFSA is just simpler to deal with when you want to pull your money out. Another option if you want to have your money ready to go in the near future is a high-interest checking account. Tangerine has a 5-month intro interest of 2.5% on regular savings accounts.