Mortgage Blog

To buy your first home in Canada, determine your budget and save for a 20% down payment to avoid mortgage insurance. Consider the First Home Savings Account (FHSA), introduced in April 2023, with an $8,000 annual contribution limit, lifetime maximum of $40,000, and a 15-year duration. FHSAs offer tax-free growth for cash and investments, holding a variety of options like stocks, mutual funds, ETFs, bonds, and GICs.

Adjust your FHSA investments based on changing goals and timelines. For a shorter timeline, choose conservative investments; for a longer one, consider higher-risk options initially and shift towards lower-risk as you approach your goal. Diversification can reduce risk, with options like Fidelity's All-in-One ETFs.

FHSAs are available through Fidelity Investments and other institutions. Open one early to start contribution room growth. If unused after 15 years, choose to withdraw funds (taxable) or transfer to an RRSP or RRIF without affecting contribution room. Consult with a financial advisor for personalized advice on these important decisions.