Average home price in Canada expected to drop 4.8% by end of 2023
The Canadian Real Estate Association (CREA) has indicated that they expect the average price of a home across Canada to decrease by 4.8% by the end of this year.
This percentage decrease is compared to the average price of a home at the end of 2022.
Based on the CREA’s projections, the process of buying a home will become more affordable for all Canadians, including new immigrants just arriving in this country.
More about buying a home in Canada as a newcomer/permanent resident: FHSAs
A recent move by the Canadian government will now make it easier for newcomers across the country to save up for their first home, thanks to a new tax-free First Home Savings Account (FHSA).
As of April 1 this year, Canadian financial institutions are now able to offer a new kind of savings account to eligible Canadian citizens and permanent residents.
To be eligible for an FHSA, the account holder must be a Canadian resident over the age of 17 that is looking to purchase their first home. FHSA holders are required to keep the account open until the first of these conditions is met:
- 15 years have passed since opening the account
- Until the end of the year when they turn 71
- Until the end of the year following the year when they make “a qualifying withdrawal [from the] FHSA” for the purchase of their first home
Other first-time home-buying benefits offered to Canadians
- First-Time Home Buyer Incentive (FTHBI)
The FTHBI offers five or ten percent of a home’s purchase price to eligible Canadians for use on a down payment for the home.
- Home Buyers’ Plan (HBP)
First-time home buyers buying or building an eligible home in Canada can withdraw up to $35,000 in tax-free dollars (per person) from their RRSP to put toward their first home.
- Provincial Grants and Incentives
Many provinces/territories across Canada have their own unique grants and incentives for first-time home buyers.