Skip to content
News & commentary

Tips/Strategies for Saving for your 1st Home

Home News & Commentary Tips/Strategies for Saving for your 1st Home
Jon Glougie

Jon Glougie

Tips/Strategies for Saving for your 1st Home

Unless you’ve been living under a rock for the past 10-20 years, you may have noticed the price of real estate increasing considerably over this period of time. Perhaps that’s why the rock made sense to live under. It is becoming more difficult for anybody trying to buy their 1st home in this market, especially if you are also trying to save for other financial goals, such as retirement, at the same time. It may seem difficult to choose between saving money for retirement and saving for a down-payment. Why not do both? Under the RRSP 1st time home buyers plan, you can withdraw and use up to $35,000 from your RRSP as part of a down-payment. This $35,000 withdrawal will remain tax-deferred (until retirement) as long as you contribute the $35,000 back into your RRSP over the 15 years following the purchase of the property. So why not just save $35,000 outside of an RRSP and be done with it? Because making an RRSP contribution may provide you with a refund. These annual tax refunds can then be used to make annual lump sum contributions into another savings account, such as a TFSA. This will allow you to save in the RRSP first (which will initially be used as part of a down-payment, and then once replenished, will make up a part of your retirement savings), and the potential refunds that come from the RRSP contributions, can be used to increase the size of your down-payment. Your RRSP can be a great savings tool for not only retirement, but for your 1st home purchase as well.

Written by:
Jon Glougie, CFP®, CIM®
Associate Portfolio Manager and Insurance Advisor
Luft Financial, iA Private Wealth


This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

September 2023 Portfolio Management Team Update

September 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth September 20, 2023 Market Review  Global equities retreated in August, after posting their best performance in the first seven months of a year since 2009, as uncertainty about the future trajectory of interest rates – fueled by stubbornly high […]

Read more

August 2023 Portfolio Management Team Update

August 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth August 15, 2023 Market Review Global equity indices added to their solid first-half gains in July on optimism about slowing global inflation and a potential end to the Federal Reserve’s interest rate hikes. The MSCI World Index’s 16.2% YTD […]

Read more

July 2023 Portfolio Management Team Update

July 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth July 26, 2023 Market Review Global equity indices rebounded in June, as economic data that suggested resilience in the U.S. economy raised investors’ hopes for a “soft landing” (which is defined as a slowdown in economic growth that avoids […]

Read more