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Trends 2 Mar 2018

Home Ownership and Personal Finances: Leverages You Can Use

As it happens every March in Québec (because of a cultural and legal peculiarity), tenants wonder if they will renew their lease on July 1 while they have until the end of the month to decide. Many of them have the urge to become home owners and for good reason: home ownership is a great way to improve their financial situation.

However, to buy a home usually requires a down payment and to make a down payment, one must have a fair amount of savings. But precisely: according to a survey conducted by the FTQ in collaboration with the Léger polling firm, 57% of Quebecers aged between 25 and 34 estimate that it is more difficult to save more than $5,000 per year than… run a half-marathon *. This means that saving to raise a down payment for the purchase of a condo can be quite a challenge!

We have some possible solutions to prepare you for the acquisition of a condominium and consolidate your down payment

  1. Buy an Accès Condos accredited unit: With the Accès Condos financial tool, all buyers of an Accès Condos accredited unit, first-time buyers or experienced buyers, benefit from a purchase credit of at least 10% of the condo value. This enables them to limit the amount of their down payment to $1,000 as well as reducing their monthly mortgage payments.
  2. Are you expecting to receive a tax refund? Then put it to good use:
    1. Pay off your debts. To qualify for a mortgage, the financial institution will consider your income, but also your debt ratio. You should plan accordingly!
    2. If you have no debts, place these amounts in a TFSA (Tax-Free Savings Account) ** for example, to cover moving and notary expenses at the time of your acquisition, or to increase your down payment beyond the $1,000 required to purchase an Accès Condos accredited unit.
  3. Take advantage of the HBP: The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 (up to $50,000 for a couple) in a calendar year from your Registered Retirement Savings Plans (RRSPs) to buy your home. Your repayment period begins the second year after your initial withdrawal and you have 15 years to reimburse the funds into an RRSP.
  4. Take advantage of the Ville de Montréal Home Ownership Program: While the Accès Condos financial tool is managed by the SHDM, nothing prevents you from simultaneously benefiting from the Home Ownership Program of the Ville de Montréal. Under certain conditions, you may receive a lump sum financial assistance or a refund of the property transfer taxes. For more information.

Dear tenants, you can do the math thanks to the online calculator (top right of the Program section of our site) and consider replacing your lease with the deed of your property!


* A survey of more than 1,500 Quebecers with respect to personal finances conducted by the Fonds de solidarité FTQ in collaboration with the Léger firm and published as part of an infomercial.
** TSFA: The TFSA is a savings account that is registered with the Canada Revenue Agency and can earn tax‑sheltered investment income. The interest and earnings from your investments in a TFSA are not taxable, either federally or provincially.
*** RRSP: An RRSP is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan.


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