The construction of a first home is not always accessible and easy for everyone, and even less with the current real estate market. Fortunately, there is a new savings plan making it easier to buy a first home and will be introduced this coming April. This first-time buyer plan is called the CELIAPP.
It’s a happy mix between the TFSA and the RRSP
Here is a small table summarizing the advantages of the CELIAPP which are also part of the following plans.
TFSA |
RRSP |
| Reduce taxable income | Reduce taxable income |
| Tax-sheltered return | Tax-sheltered return |
| Tax-free withdrawal | Tax-free withdrawal |
| No need to repay the amount withdrawn | — |
How much can I contribute?
You are entitled to contribute up to $8,000 per year up to a total of $40,000. The balance is added to the following year. If you contribute $3,000 this year, next year you can contribute $13,000 ($8,000 + $5,000 balance from the previous year). These contributions do not affect your RFSA and RRSP contributions. You can therefore contribute to all 3 at the same time.
You have 15 years after opening the CELIAPP to use it for the purchase of a first home or it will have to be withdrawn. You and your spouse can use your CELIAPP to purchase the same first home.
You can combine the RRSP and the TFSA on the same purchase.
Am I eligible for the CELIAPP?
If you check all of these boxes, you are eligible for the savings plan.
□ Resident of Canada
□ At least 18 years old
□ Less than 71 years old
□ Did not inhabit a home for which you are the owner of in the year of opening of the CELIAPP
□ Has not inhabited a home for which you are the owner in the last 4 years
For even more tips for your construction, contact the office nearest you.
