homepage
Get Your Free Tfsa Report
Name:
Email:
 
 
Your Income Range
Regular Investment
$
Rate of Return
Lump Sump
$
Term of Investment
  (In Years)
 
For illustrative purposes only, not for financial planning. Please read the assumptions.
 
Tfsa Information
 
 
Further Reading
 
Stay informed
Subscribe Using RSS
 
Tags

Posts Tagged ‘mortgage’

Purchasing a Home with Your TFSA

May 2nd, 2009

Would you like to find out how to fund your home purchase with a Tax Free Savings Account?

Did you know that young couples struggling to save money for their first home will find the tax free savings accounts (TFSAs) an immense help towards becoming owners.

The Financial PostsĀ Jonathan Chevreau has been a reliable go-to financial guru, wrote the following about building equity with the TFSA.

Consider that if both spouses each put aside the $5,000 annual maximum amount, they’d have $30,000 saved within three years–plus any growth–all free of tax.

It’s possible that a risk-tolerant couple willing to put stocks into their TFSAs while values are depressed could see that $30,000 rise to $40,000 or $50,000 in a few years time, if stocks roar back.

Of course, those who want the certainty of a down payment by a set time frame should settle for more conservative interest-bearing investments such as GICs, Canada Savings Bonds, money market funds or high-interest savings accounts.

Either way, the TFSA provides a good alternative to the previous route of borrowing from RRSPs. Under the Home Buyer’s Plan introduced in 1992, a first-time home buyer can borrow $20,000 ($40,000 for a couple) from an RRSP interest-free. The catch is this loan must be repaid within 15 years or suffer the tax hit. Such withdrawals, of course, will reduce your retirement nest egg, defeating the main purpose of RRSPs.

Find out more information by reading the rest of the article here.

TFSA & RRSP | , , , , , , , , | No Comments »
 
 
 
 

TFSA&Kids »

 
Find the latest information about the TFSA
  More Details
 

TFSA Couples »

 
Learn the best strategy for your partners TFSA
  More Details
 

TFSA Seniors »

 
Read more about your retirement and the TFSA
  More Details