Can I use my TFSA to buy a home?

Angela Iermieri | Financial Planner | Desjardins Group

Yes. You can use your TFSA to save up for buying a home since TFSA investment income and withdrawals are tax-free. If you're planning to buy your first home, another smart move would be to contribute to your TFSA and, when your income is higher, withdraw money from your TFSA to contribute to your RRSP. This way, you'll save more tax. 

The RRSP contribution will lower your income taxes, and you'll be able to use money from your RRSP to make a down payment through the Home Buyers' Plan (HBP), thanks to a tax-free RRSP withdrawal.

If there are any questions, send them to us along with any comments you may have.

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