20 Dec



Posted by: Peter Paley

Enough about mortgages!  Time to have some fun with our top 10-holiday jokes!

  1. What do you call a snowman with a six-pack? An abdominal snowman! ❄️🏋️‍♂️
  2. Why did the gingerbread man go to the doctor? Because he was feeling crumbly! 🍪😄
  3. What do you get if you cross a snowman and a dog? Frostbite! 🐾❄️
  4. Why did the Christmas cookie go to therapy? It was feeling a little crumby about itself! 🍪🛋️
  5. What do snowmen eat for breakfast? Frosted flakes! 🥄❄️
  6. How does a snowman get around? By riding an “icicle”! ❄️🚲
  7. Why did Santa take music lessons? Because he wanted to improve his “wrap” skills! 🎁🎶
  8. What do you get when you cross a snowman and a vampire? Frostbite! ❄️🧛‍♂️
  9. Why was the snowman looking through the carrots? He was picking his nose! ❄️🥕😄
  10. Why did the Christmas tree go to the barber? It needed a trim! 🌲✂️

Feel free to share these jokes with family and friends for some holiday laughter! 🌟😄

If you do have any mortgage questions, please contact us!

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19 Dec

Should I Take A 2-year Or 3-Year Term? A Variable Rate? What Do I Do?


Posted by: Peter Paley

Before I even begin this article and the math and calculations, I believe in making a choice that you feel is in your best interest.  In our opinion taking a shorter-term rate is a HUGE gamble!  You are taking a big risk that rate will be low enough at the end of the term you choose to make up the large premium you paid in unnecessary interest.

We are going to use the same scenario for 4 different calculations.  We are going to be renewing a $300,000 mortgage for a client who expressed interest in a 2-year fixed, 3-year fixed, 5-year fixed, and a 5-year closed variable.

Mortgage Amount: $300,000.00
Transaction Type: Renewal/Switch/Transfer
Existing Rate: 3.69%
Existing Term: 5-year Fixed Insured
Renewal Date: January 30, 2024
Existing Payment: $1,528/month
Remaining Amortization: 20 Years.
Mortgage Insurer:  Sagen

Scenario One: 2-year Fixed Insured
Mortgage Rate: 6.09%
Remaining Amortization: 20 years.
New Payment: $2,152/month
Total Interest 24months: $35,154
Total Principal 24 months: $16,487
Remaining Amortization End Of Term: 15 years
Remaining Mortgage Balance: $283,513

Scenario Two: 3-Year Fixed Insured
Mortgage Rate: 5.44%
Remaining Amortization: 20 years.
New Payment: $2,043/month
Total Interest 36months: $46,338
Total Principal 36 months: $27,220
Remaining Amortization End Of Term: 15 years
Remaining Mortgage Balance: $272,780

Scenario 3: 5-Year variable Closed Insured
Mortgage Rate: 6.15%
Remaining Amortization: 20 years.
New Payment: $2.162/month
Total Interest 60 months: $84,717
Total Principal 60 months: $44,997
Remaining Amortization End Of Term: 15 years
Remaining Mortgage Balance: $255,003

Scenario 4: 5-Year Fixed Insured
Mortgage Rate: 4.99%
Remaining Amortization: 20 years.
New Payment: $1,970/month
Total Interest 60months: $68,277
Total Principal 60 months: $49,909
Remaining Amortization End Of Term: 15 years
Remaining Mortgage Balance: $250,091

Here are the above scenarios in a handy spreadsheet

But wait!  This isn’t an apples-to-apples comparison.  How will a borrower know what will put them the furthest ahead in the long run?  While no one has a crystal ball to make these predictions accurately, there are somethings that are often overlooked in the mortgage industry, which are PRIVILEGE PAYMENTS!

Instead of paying unnecessary interest rate premiums, what happens when you take a 5-year fixed and add the savings directly to your principal payments?  Magic Happens!

You will probably come out ahead if you take a 5 year fixed and apply the difference in payment directly to you principal.  You will pay LESS interest and MORE principal and reduce your overall mortgage amortization.

2-Year Vs. 5-Year
Interest Savings over 2 Years: $6,594.00
Extra Principal Paid: $6,596.00
Amortization reduced: 2 Years 6 Months
Rate to break even after 2 years under 4%.

3-Year Vs. 5-Year
Interest Savings Over 3 years: $4,084
Extra Principal Paid: $4,065
Amortization reduced 1 Year 2 mos.
Rate to Break Even after 3-year term is around 4%.

5Year Variable Vs 5-Year Fixed
Interest Savings over 5 Years: $17,957
Extra Principal Paid: $17,949
Amortization Reduced 2 Years 9 Mos.

To be fair, we can’t predict what variable rates will do and will likely be a safer bet than taking high premium short-term fixed rates.

The math will probably work out better taking the best 5-year fixed and paying extra!

Contact us to help you with your next mortgage!

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18 Dec

Mindful Gift-Giving: Celebrating the Holidays without Overspending


Posted by: Peter Paley

‘Tis the season of joy, giving, and gratitude. During the holiday hustle, let’s take a moment to consider the true essence of the season – meaningful connections and thoughtful gestures. This blog post aims to inspire a shift towards mindful gift-giving, focusing on secondhand and heirloom treasures, handmade delights, consumable pleasures, experiential wonders, and the charm of supporting small businesses. Let’s celebrate the holidays without breaking the bank and embrace the beauty of simplicity.

Secondhand & Heirloom Treasures

Secondhand treasures offer a unique charm. Explore local thrift stores, vintage markets, or online for hidden gems that tell stories of a time gone by. Share a personal experience of finding a special secondhand item and how it became a cherished gift. It took me many years of being an adult to treasure and cherish items passed down from my grandparents and family.  These gifts are some of my favourites I have today.

Handmade with Love

The art of handmade gifts is a testament to the thought and effort invested in each gift. Whether you’re crafty yourself or supporting local artisans, handmade gifts carry a personal touch that mass-produced items lack. Share a DIY gift idea or spotlight a local artist whose work aligns with the holiday spirit.  Having purchased many books, and machines to hand-make cards, engravings, and more.  It’s very time-consuming and a labour of love.  I love it when someone takes the time to make something for me.

Consumable Delights

Gifts that can be savored and enjoyed without adding to clutter are a win-win. Consider gourmet treats, specialty beverages, or homemade goodies that tantalize the taste buds. Discuss the appeal of consumable gifts and how they align with a more sustainable approach to holiday giving.

Experiences Over Possessions

Experiences create lasting memories that far outlive material possessions.  Whether it’s concert tickets, spa vouchers, or a weekend getaway,  the value of shared experiences can cement lasting relationships.  I love this to help support local businesses that are service, rather than sales-based.

Supporting Small Businesses

Highlight the charm of local shops and small businesses, where each purchase supports a dream. Share in the success of entrepreneurs who have created unique holiday offerings. Check out your neighborhood and seek out the vibrant world of small businesses for one-of-a-kind gifts.

The Pitfalls of Overspending

Overspending during the holidays or any time of year can feel exhilarating!  However, when the credit card bills start coming in, it can feel like the worst hangover.   Credit card interest is higher than ever, 12%, 19.99%, 28%.  It’s just not worth it.  It can jeopardize your credit rating and even prevent you from purchasing a home in 2024


As we navigate the holiday season, let’s prioritize meaningful connections over material possessions. Mindful gift-giving not only benefits the recipient but also contributes to a more sustainable and joyous celebration. Please share your experiences with us, and let’s create a community that values the spirit of giving over the price tag.

Closing Thoughts

May your holiday season be filled with warmth, love, and the joy of giving. Thank you for considering the beauty of mindful gift-giving, and here’s to a season that truly celebrates the heartwarming connection between us all.

Happy holidays from DLC Mainstream Mortgages!

15 Dec

Right Now, It’s All About Rates!


Posted by: Peter Paley

You will often hear me say that mortgages aren’t only about rates.  Finding the best solutions to fit your needs is 10x more important.  This is 100% TRUE.

However, this all goes out the window in a decreasing interest rate environment.  We are currently in a decreasing mortgage rate environment.

5-year Canadian Bond Yields have dropped substantially in the past few weeks which is good news for mortgage borrowers.   Rates are starting to come down across the board!  There are two reasons for this, firstly lower bond yields, and secondly lenders need to get through the seasonally slower winter period and rate specials are usually the way they accomplish this.

If you have an approved mortgage and it’s closing a minimum of 10 business days from the time you’re reading this, call your broker/bank/credit union to see if they can offer you a lower rate.  They should be able to accommodate this request.

If you have an approved mortgage that is closing after January 2, 2024, contact us for a second opinion!  This call /text/e-mail may save you thousands of dollars, even tens of thousands of dollars depending upon the size of your mortgage!

We will provide fast, efficient, and honest advice!

Contact Us Today!

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14 Dec

I’ve Never Used A Mortgage Broker Before. How Much Can I Really Save?


Posted by: Peter Paley

This question came in through one of our social media platforms: “I’ve never used a mortgage broker before.  How much can I really save?

Benjamin Franklin wisely said to “worry about the pennies and the dollars will take care of themselves.”

Each client and situation is unique, however, we can break down the savings for this particular client’s situation.

Current Mortgage:  At a Big-5 Bank
Mortgage Amount: $403,128.00 at renewal.
Clients have excellent credit and outstanding job tenure and income.
20 years are remaining on their mortgage amortization.
They bought their home with a 10% down payment and the mortgage is default-insured at Sagen Canada.
Their Big-5 bank has offered them a renewal of 5.89% for a 5-year fixed rate and higher rate shorter-term options (I’m not a big fan of this strategy at the moment which will be a topic for another day)

Let’s calculate the numbers:  We can offer them a 5-year Fixed Rate mortgage at 4.99% for a 5-year fixed rate.

This client would save:
$199.00 per month on their payment
$17,123.00 in unnecessary interest
$5,163.00 in additional principal would be paid

It’s a spread of $22,286.00!

And since our our lenders offer a 20% payment privilege meaning the payment can be increased by up to 20%, these clients elect to increase their payment by $199/month to pay EVEN MORE PRINCIPAL AND SAVE MORE INTEREST!

This means that the clients will both SAVE AND PAY MORE!  They will pay a total of:
$90,175.00 in interest
$80,577.00 in principal
and reduce their amortization to 17 Years and 9 months


Contact us today!!!

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13 Dec

Maximize Your Home Financing: Best Rates, No Fees – Mortgage Renewals and Refinancing Special!


Posted by: Peter Paley

When it comes to your home financing, why settle for anything less than the best? Whether you’re renewing your mortgage or considering a refinance, we’ve got an offer that stands out from the rest. Dive into a world of unbeatable rates, no legal fees, appraisal fees, or transfer fees for renewals, and say goodbye to appraisal fees for refinances. Let’s explore how you can make the most of your home financing journey.

Mortgage Renewals: Unlock Exclusive Benefits

1. Best Rates Guaranteed: Our commitment to you starts with unbeatable rates on mortgage renewals. We understand that securing a low rate is essential for your financial well-being, and we’re here to offer you the very best.

2. No Legal Fees: Why pay extra when you don’t have to? With our mortgage renewal special, bid farewell to legal fees. Your renewal process should be seamless and cost-effective, and that’s exactly what we’re here to provide.

3. Zero Appraisal Fees: Appraisal fees can add up, but not with us. Enjoy the peace of mind that comes with knowing your mortgage renewal won’t be burdened by additional appraisal costs.

4. No Transfer Fees: We believe in transparency and fairness. That’s why there are no hidden transfer fees when you choose to renew your mortgage with us. Your financial well-being is our priority.

Refinancing: Your Gateway to Better Terms

1. Best Rates Always: Whether you’re looking to lower your monthly payments or access the equity in your home, our refinancing options come with the promise of the best rates in the market. We believe in helping you achieve your financial goals without breaking the bank.

2. No Appraisal Fees: Thinking about refinancing? Say goodbye to appraisal fees! We want to make the process as smooth as possible, and that means eliminating unnecessary costs for our valued clients.

3. Tailored Terms for You: Your financial situation is unique, and so should your mortgage terms. With our refinancing options, expect personalized terms that suit your needs, giving you the flexibility you deserve.

How to Get Started:

  1. Contact Us: Reach out to our dedicated team to discuss your mortgage renewal or refinancing needs. We’re here to answer your questions and guide you through the process.
  2. Explore Your Options: Discover the various mortgage renewal and refinancing options available to you. Our goal is to provide you with choices that align with your financial objectives.
  3. Secure Your Future: Whether you’re renewing or refinancing, we aim to help you secure a better financial future. Take the first step today and experience the difference of working with a mortgage provider that puts your needs first.

Your home financing journey should be a source of financial empowerment, not stress. With our exclusive mortgage renewal and refinancing offers, we’re dedicated to providing you with the best rates, terms, and a hassle-free experience. Don’t miss out on this opportunity to maximize your home financing – contact us today and take the first step towards a brighter financial future.

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12 Dec

The History Of Mortgage Rules And The Erosion Of Purchasing Power In Canada


Posted by: Peter Paley

I posted this article I wrote a few years ago and I thought it needed some updating to reflect how punitive policy has put Canadian housing in peril.

Meet Janet, she is a single mom, earning $55,000 per year, collecting child support of $600 per month, and also collecting CCB of $400 per month.  The example of Janet will be used to calculate her maximum purchase price based on each year that the mortgage rules have tightened.  Janet has a $20,000 balance on a line of credit.

There are a few things I need to address in this article.  I kept property taxes at $3,000 per year consistently through the calculations.  Between my memory and what I could find on the internet is what I used for rates.  I tried to use a 5 year fixed rate that prevailed throughout the year as much as possible.  Is this an exact representation of what Janet could buy? No.  Does it give the reader a good understanding of how housing policies affected home ownership, YES!

I think the most disappointing result of these rule changes is that they stunted Canadian real estate development for 16 years.  Supply did not keep up with demand.  Developers eased their efforts because of fears that no one would be able to buy any properties in their developments.  The lack of supply and the lower interest rate environment throughout the pandemic drove housing prices up 20-30%.  The pandemic and post-pandemic material prices put construction prices at an all-time high.  Today, we have faced one of the fastest and steepest interest rate hikes in history, and this in conjunction with in my opinion terrible policy has put the Real Estate supply in jeopardy for the next decade and beyond.   Janet’s purchasing power dropped from $410,000 to a paltry $210,000 over 16 years.  The type and size of property she can afford in 2022 are drastically different.

Janet’s Mortgage Maximum: $410,000
Down Payment 0% – $0.00
Rate: 5.70% 5-Year Variable
Amortization 40 years
Monthly Payment: $2,198.02

– No down payment required – finance 100%
– Maximum amortization was 40 years.
– Refinance up to 95% of the value of your home.
– With excellent credit scores of 680+, you could have a Total Debt Service Ratio (TDSR) of 49%
– The minimum credit score for CMHC was 580.

Fall 2008
Janet’s Mortgage Maximum: $425,000
Down Payment 5% – $21,250
Rate: 4.45% 5 Year Variable
Amortization 35 years
Monthly Payment: $1,929.14

– Reduction of maximum amortization from 40 years to 35 years.
– Introduction of a minimum score for Insured mortgages of 620 (But lower scores were
considered on an exception basis).
– 100% financing was eliminated. (However, you could still use a Cash Back Mortgage for
down payment).
-5% Down Payment minimum implemented
– Maximum TDSR lowered to 45%.

Spring 2010
Janet’s Mortgage Maximum: $365,000

Down Payment 5%: $18,250
Rate: 5.85% 5 Year Fixed
Amortization 35 years
Monthly Payment: $1,974.84

– Stricter rental property guidelines. The amount of rent for income/debt servicing
purposes was reduced from 80% to 50%.
– A Mortgage Qualifying Rate was introduced for all insured mortgages on all variable
and fixed-rate mortgage terms 4 years or less. (5-year fixed rate mortgages
were still allowed to qualify at the contract rate).
-The rental Mortgage down payment minimum was raised from 10% to 20%.
– Insured refinances reduced from 95% Loan to Value to 90%.

Spring 2011
Janet’s Mortgage Maximum: $340,000

Down Payment 5%: $17,000
Rate: 5.69% 5 Year Fixed
Amortization 30 years
Monthly Payment: $1909.55

– Insured Home Equity Lines of Credit discontinued.
– Insured refinances further reduced from 90% Loan to value to 85%
– Maximum amortizations lowered further from 35 years to 30 years.

Summer 2012
Janet’s Mortgage Maximum: $305,000

Down Payment 5%: $15,250
Rate: 5.24% 5 Year Fixed
Amortization 25 years
Monthly Payment: $1,777.18

– Implementation of a New Gross Debt Service Ratio maximum of 39%
– Refinance loan to value reduced further from 85% to 80%
– Maximum amortization reduced from 30 years to 25 years for insured mortgages.

OSFI B20 – 2012-2013:
– A new maximum loan-to-value for Home Equity Lines of Credit of 65%, down from 80%.
– The Bank of Canada’s qualifying rate is now applied to all variable and fixed rate
mortgage terms of 4 years or less for conventional mortgages.
– Self-employed borrowers are mandated to provide reasonable income verification. Stated
Income Programs disappear.
– Cashback mortgages are no longer permitted to be used for down payment.

Winter 2014 – OSFI B21
Janet’s Mortgage Maximum: $255,000

Down Payment 5%: $12,750
Rate: 4.79% 5 Year Fixed
Amortization 25 years
Monthly Payment: $1439.54

-Tighter regulations around how to calculate payments on Secured and Home Equity Secured
Lines of Credit.
– All revolving credit payments for debt servicing are now calculated at 3% of the
outstanding balance instead of interest-only payments. For example, a $10,000 credit
card balance would now have a qualifying payment of $300/month up from about $45/month.

Summer 2015
Janet’s Mortgage Maximum: $255,000

Down Payment 5%: $12,750
Rate: 4.64% 5 Year Fixed
Amortization 25 years
Monthly Payment: $1418.25

– Default Mortgage Insurers increase premiums. At a 90.1% – 95% Loan to Value, the premium
increased from 3.15% to 3.6%. This cost to consumers would be an additional $1,350 of
default insurance on a $300,000 mortgage.

Janet’s Mortgage Maximum: $245,000

Down Payment 5%: $12,250
Rate: 4.64% 5 Year Fixed
BoC Qualifying Rate – 5.34%
Amortization 25 years
Monthly Payment: $1,364.93

– Increase the minimum down payments for mortgage amounts between $500,000 and
– Mortgage Insurance is limited to purchase prices not exceeding $999,999
– Insured refinances were eliminated.
– To avoid the abuse of capital gains exemptions, foreign property owners need to prove
that they are selling a primary residence.
– The mortgage stress test expands to 5-year term mortgages but excludes uninsured
conventional mortgages.

Janet’s Mortgage Maximum: $240,000

Down Payment 5%: $12,000
Rate: 4.89% 5 Year Fixed
BoC Qualifying Rate – 5.34%
Amortization 25 years
Monthly Payment: $1,330.91

– Insurers realized revenues are down from all the previous changes and increased premiums.
With a 5% down payment, the mortgage insurance premium jumped from 3.6% to a
WHOPPING 4%. This means that you as a homeowner would have a mere 1% equity interest in
your home.

– It was announced in January 2018 that all conventional mortgages will need to
qualify with their stress test which will be the contract rate of +2.0%. So that means
that if the 5-year fixed rate is 3.49%, you would have to qualify at a rate of 5.49%.

Janet’s Mortgage Maximum: $260,000

Down Payment 5%: $12,750
First Time Home Buyer Incentive 5%: $12,750
Rate: 5.19% 5 Year Fixed
BoC Qualifying Rate: 5.19%
Amortization 25 years
Monthly Payment: $1,429.35

– First Time Homebuyer Incentive is launched.
– RRSP Limit for the Homebuyers Plan increased from $25,000 – $35,000

2020: The Pandemic
Janet’s Mortgage Maximum: $260,000

Down Payment 5%: $12,750
First Time Home Buyer Incentive 5%: $12,750
Rate: 4.79% 5 Year Fixed
BoC Qualifying Rate: 5.19%
Amortization 25 years
Monthly Payment: $1,374.44

-CMHC implements strict lending and underwriting criteria causing it to lose much of its market share.
– Punitive policies included reducing lending ratios increasing credit score minimums to 680, and banning several types of borrowed down payments.

2022: Post Pandemic
Janet’s Mortgage Maximum: $210,000

Down Payment 5%: $10,500
First Time Home Buyer Incentive 5%: $10,500
Rate: 5.99% 5 Year Fixed
BoC Qualifying Rate – 7.99%
Amortization 25 years
Monthly Payment: $1,245.56

Rates started increasing a lot by the end of 2022 posted rates reached a whopping 6.49%

Has the path we have taken to get here been the right one? Probably Not
Were some of these policies a good idea? Absolutely
Did we go too far? Yes!

What needs to change in the industry as a whole?

  1. Longer amortization for first-time homebuyers
  2. A review of the stress test.  Now that rates have normalized removing the +2% Stress Test is warranted.
  3. A more common sense approach to underwriting basing the calculations on net income confirmed utility amount per property, and making Gross Debt Service and Total Debt Service ratios more accurate.
  4. Stability in the residential construction market.  The ability/mechanism required to hold a mortgage rate for 1-3 years to allow developers to build condo towers and housing.
  5. Increase portfolio risk slightly at default mortgage insurers (CMHC, SAGEN, CANADA GUARANTY) our default rate in Canada is less than .05%.
  6. Better and more accurate credit reporting, or at least the ability to understand credit reporting better.  A common sense approach to this is needed.
  7. Stop the misrepresentation and fraud.  There needs to be heftier and more punitive consequences for home buyers, mortgage brokers, REALTORs, Lawyers, Home Inspectors, Banks, and Credit Unions.
  8. Affordable homeownership programs.  Tiny houses, better policy around modular and mobile homes.
  9. Home renovation programs to help spruce up existing home inventory.  I propose having insured refinances available for this sole purpose.  Refinance to 90-95% of the value of an existing home to replace windows, roofs, wiring, and mechanical systems, and modernize kitchens, bathrooms, and more.
  10. The federal government, provinces, and municipalities need to focus on development and home ownership for first-time homebuyers and New Canadians.  Land transfer tax exemptions, housing grants, home improvement grants and better permitting processes at all municipal and provincial permitting offices.

If you have an further question we would love to answer them for you!

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10 Dec

OPEN HOUSES – Winnipeg, Calgary & Edmonton – December 10, 2023


Posted by: Peter Paley

If you’re in the market for a new home, one of the best things to do is visit open houses!   You will be able to see what you like, check out different neighbourhoods, and interview REALTORS if you haven’t hired one yet!

To qualify for your mortgage please contact us directly or download our app from www.mainstreamapp.ca

If you’re ready to proceed with a formal application try our secure online application by clicking the following link APPLY FOR MY NEXT MORTGAGE NOW!




We would love to be your mortgage brokers!

Peter Paley, Colten Bourdreau & Derek Vandall
Phone/SMS: 431.482.2187
E-mail: GreatRates@MainstreamMortgages.Com
Website: www.MainstreamMortgages.ca

8 Dec



Posted by: Peter Paley

There has been a lot of buzz about the Renewal Cliff in the media lately.  What is it?  It is a concern that borrowers will not be able to afford their mortgage renewal in the new higher interest rate environment.

For example, if you purchased a home for $350,000 in Winnipeg, MB in January 2019 with 5% down, you would have a mortgage interest rate near 3.24% the monthly payment would have been $1,652/month.
The mortgage will be renewed in January 2024 with a balance of approximately $292,010 and 20 years left remaining on the amortization.   Most banks are offering a renewal rate of 5.89% or higher!  This will result in a payment of approximately $2,062 per month, an increase of $410.00/month or about 25%.

There is a fear that in the slowing economy, many borrowers will face work shortages compounded with higher mortgage payments.

What can be done?  Start shopping for a better rate as soon as you can, we recommend 7-8 months before your mortgage renewal.  Using the same example above Mainstream Mortgage could get these borrowers a rate of 4.99% for a 5-Year Fixed Rate (at the time of writing and subject to change).  This would lower the renewed mortgage payment to $1,917 per month, saving the borrowers $144/month in payment, $12,400 in unnecessary interest over the 5 Year Term, and allow them to pay an extra $3,740 in principal.  It always pays to call us to get a 2nd opinion.

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7 Dec



Posted by: Peter Paley

Don’t Miss the December 31, 2023 FHSA Contribution Deadline!

Are you dreaming of owning your first home? The First Time Home Buyers Savings Account (FHSA) might just be the key to turning that dream into reality. As the year comes to a close, it’s crucial to remind ourselves about the FHSA and the upcoming December 31, 2023 contribution deadline. Let’s delve into the benefits of FHSA and why you should consider making your contributions before the year ends!

What is FHSA?

FHSA – The Tax-Free First Home Savings Account is a new registered account that provides tax-free savings for first-time home buyers. No repayment is required. No withdrawal limit. Maximum annual contributions of $8,000 and a lifetime total of $40,000.  Please visit the GoC website for more information https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

Key Benefits:

  1. Tax Advantages: FHSA contributions are tax-deductible, meaning you can lower your taxable income by contributing to the account. This provides an immediate financial benefit, making it an attractive option for those looking to save on taxes while saving for their first home.
  2. Earnings Grow Tax-Free: The interest or investment gains within the FHSA accumulate tax-free. This allows your savings to grow more efficiently over time, helping you reach your homeownership goal faster.
  3. First Home Purchase Withdrawal: One of the most significant advantages is that you can withdraw funds from the FHSA for the sole purpose of purchasing your first home. These withdrawals are typically exempt from federal taxes, further enhancing the financial benefits of the account.

December 31, 2023 Deadline:

As the year comes to a close, it’s important to remember that the deadline for contributing to your FHSA for the current tax year is December 31, 2023. If you haven’t maxed out your contributions or started an account yet, now is the time to act! Making contributions before the deadline ensures that you can take full advantage of the tax benefits for the current year.  While there is a carryforward option it is only limited to 1 year.  It is recommended that if you can take advantage of the $8,000 contribution limit you do so in each tax year!

How to Contribute:

  1. Check Contribution Limits: Be aware of the annual contribution limits for FHSA ($8,000 per year to a life time limit of $40,000). Understanding these limits ensures that you maximize your savings while staying within the prescribed boundaries.
  2. Review Eligibility: Confirm your eligibility for FHSA contributions. Typically, these accounts are available to individuals who have not owned a home in the past or have not owned one within a specified time frame.
  3. Contact Your Financial Institution: If you don’t have an FHSA yet, get in touch with your financial institution to set one up. If you already have an account, confirm the contribution process and any additional details.

The First Time Home Buyers Savings Account is a valuable resource for those on the path to homeownership. With the December 31, 2023 deadline approaching, now is the time to take action. By contributing to your FHSA before the end of the year, you not only maximize your potential tax benefits but also bring yourself one step closer to unlocking the door to your dream home.

If you need a referral to a financial planner or require any assistance with your mortgage pre-approval, please contact us today!

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