🏡 First-Time Home Buyer Hack in Canada: How to Get a $21,500+ Tax Refund
Buying your first home in Canada? Congratulations! 🎉 But before you pick out paint colors or plan that housewarming party, there’s a smart way to save thousands of dollars in taxes — if you know the right strategy.
At Unity Financial Services, we help first-time buyers and families use tax rules in their favor. Today, we’re breaking down a trendy first-time home buyer hack that could put $21,500+ back into your pocket.
🤔 What’s an FHSA? (And Why You Need One!)
The First Home Savings Account (FHSA) is a brand-new savings tool introduced in Canada. Think of it as a mix between an RRSP and a TFSA:
- Tax-deductible contributions (like an RRSP)
- Tax-free withdrawals when used to buy your first home (like a TFSA)
- Contribution limit: $8,000 per year up to a lifetime max of $40,000
👉 In simple words: you get a tax break when you put money in, and you pay no tax when you take it out to buy your home.
📌 Learn more on our FHSA planning page about how an FHSA fits into your strategy.
💡 The Home Buyer Hack (Step by Step)
Let’s assume:
- You earn $100,000/year
- You’re buying your first home with a $60,000 down payment
- You have $24,000 saved in FHSA and $36,000 in a regular savings account
Here’s how to supercharge your tax refund:
1️⃣ Move the $36,000 from your savings into your RRSP (assuming you have contribution room) at least 90 days before closing.
2️⃣ Withdraw the full $36,000 tax-free under the Home Buyers’ Plan.
3️⃣ Claim that $36,000 RRSP contribution when you file your taxes.
👉 Result: A tax refund of around $13,000.
Now here’s the bonus: your $24,000 FHSA contribution also gives you a tax deduction. On a $100K salary, that’s another $8,500 refund.
🎯 Total refund potential = $21,500+
🛠️ What Can You Do With an Extra $21,500?
Here are smart (and fun) ways to use your tax refund when buying your first home:
- 🪚 Renovations: Upgrade your kitchen, bathroom, or basement without extra debt.
- 🏛️ Welcome Tax: In Québec, you’ll face a hefty “taxe de bienvenue” when buying property — use your refund to cover it stress-free.
- 🛋️ Furniture & Appliances: Turn your empty house into a cozy home.
- 🎉 Housewarming Party: Celebrate your achievement with family, friends, and colleagues!
👉 This is the power of planning with your FHSA + RRSP.
🎯 Why This Hack Works
Most first-time buyers don’t realize how much money they’re leaving on the table. By using your FHSA contributions + RRSP Home Buyers’ Plan, you’re stacking tax benefits that directly put cash in your pocket.
Instead of draining your savings account, you’re leveraging the system to cover costs every new homeowner faces.
👩💼 How Unity Financial Services Can Help
At Unity Financial Services Montreal, we guide first-time buyers through every step:
- Opening and contributing to an FHSA or an RRSP account
- Planning RRSP deposits and withdrawals under the Home Buyers’ Plan
- Filing your taxes to maximize refunds
- Creating a full financial plan to balance homeownership, savings, and investments
📌 Explore more money management tips in our blog.
✅ Final Takeaway
If you’re a first-time home buyer in Canada, this is the hack you can’t afford to miss. By combining your FHSA and RRSP smartly, you could unlock $21,500+ in tax refunds.
That’s enough to pay your welcome tax, buy new furniture, renovate your dream space — or just throw the best housewarming party ever. 🎉
💡 Ready to make your first home purchase smarter?
👉 Book a free consultation with Unity Financial Services today.