How can you finance the purchase of your first home?

Here’s some useful information to help you achieve your goal:

  • Buying a home is an important decision.

    Before moving forward, you need to ask yourself a few questions. Do you have the financial means to make a major purchase such as this? Do you have the discipline to make the required repayments?

    • Determine your ability to pay over the short and medium terms, the financial obligations related with the purchase of a property. Since the mortgage repayment will be a big part of these obligations, it's important to have a clear idea of your financial situation.
    • Draw up an accurate account of your financial inflows and outflows over the last 12 months. Doing so will allow you to determine the amount that you can allocate to the repayment of your mortgage each month.
    • You can also hire a financial advisor to help you accurately determine your borrowing capacity.
    • You may also want to meet with a real estate agent, who can guide you through the purchase process.

    Prepare for the unexpected.

    When you buy a home, it’s best to have a financial cushion in case difficult times arise. No one is immune from possible loss of income, an unexpected increase in expenses or rising interest rates.

  • After determining your financial means, meet with your lender or mortgage broker to review your options. They’ll let you know what you need to do to get a mortgage pre-approval once you’ve found the property you want to buy.

    What’s a mortgage pre-approval?

    It’s a way to knowing ahead of time the amount your financial institution is willing to lend you to purchase a home. It also lets you know how much you can pay, what your interest rate will be for the loan term and how much your mortgage payments will be.

    If possible, choose weekly or bi-weekly, rather than monthly, payments. By doing so, you’ll pay off your mortgage faster and pay less interest!

  • What’s the HBP?

    The Home Buyers' Plan (HBP) allows you to use the money you accumulate in your RRSP to buy a first home without having to pay tax. It's like an interest-free loan that you make to yourself.

    Raise your down payment more easily with the RRSP+

    With the additional 30% in tax savings* you get thanks to an RRSP+ with the Fonds, in just five years, you could raise $25,000 by spending only $8,220 out of pocket, after your tax refund.** You’ll have saved more than $16,780! Compared to a regular RRSP, you can achieve your dream of owning a home at a lower cost.

    How much money can I withdraw through the HBP?

    Each spouse who is a co-owner can withdraw up to $25,000 from their RRSP without paying taxes.

    Be aware that the amounts available for withdrawal are those contributed to your RRSP+ for at least 90 days.

    How does the HBP work with an RRSP+ with the Fonds?

    When you’re ready to start the process, contact one of our Shareholder Services agents at 1 800 567-3663. They’ll be happy to answer your questions and send you the documentation you need.

    You can also refer to our FAQ for additional information.

    After choosing the HBP, it’s time to think about paying the money back into your RRSP.

    You must pay back the money you withdrew from your RRSP over a maximum period of 15 years, by paying back 1/15th of the amount each year.

    Did you know you could pay back your HBP at the Fonds no matter which financial institution you took it out with? To learn more, refer to our FAQ or contact one of our Shareholder Services agent at 1 800 567-3663.

Notes

*The tax credits granted to the shareholders of the Fonds are 15% at the federal level and 15% at the provincial level. Tax credits are capped at $1,500 per tax year, which corresponds to purchases of Fonds de solidarité FTQ shares having a value of $5,000.

**Example based on the 2017 tax year, for an individual with an annual taxable income of $50,000, at a marginal rate of 37.12%. The calculated amounts are estimates and may vary according to your tax situation.

With the RRSP+, it’s easier than ever to buy your first home.

Make the most of the benefits of your RRSP+, and become a homeowner for less.

Enjoy additional tax savings

An RRSP+ with the Fonds offers you an additional 30% in tax savings.*

Raise your down payment faster.

By reinvesting the additional 30% in tax savings* you get with the RRSP+, you can save more money and reach your goal faster.

Become an owner earlier than you thought.

By raising your down payment faster, you’ll become an owner earlier than you planned.

Handy tip

If you have withdrawn funds in one or more other financial institutions under the HBP, you can repay it at the Fonds and make the most of the 30% in tax savings the RRSP+ offers.* On a $25,000 repayment, this could represent additional savings of $7,500.

Notes

*The tax credits granted to the shareholders of the Fonds are 15% at the federal level and 15% at the provincial level. Tax credits are capped at $1,500 per tax year, which corresponds to purchases of Fonds de solidarité FTQ shares having a value of $5,000.

How to contribute less yet make the most of the HBP

Contribute $5,000 a year and accumulate $25,000 in five years for a net out-of-pocket cost of $8,220!

Name: Marc

Age: 35

Annual taxable income: $60,000

Family status: In a couple, about to become a father

Goal: To buy his first home

Marc wants to save $25,000 in the next five years, and then take advantage of the Home Buyers’ Plan to buy his first home. To this end, he decides to contribute $5,000 to his RRSP+ each year. In real terms, thanks to the additional 30% in tax savings, the $25,000 will only cost him $8,220, which after five years represents $16,780 in tax savings.

Notes

*Example based on the 2017 tax year, for an individual with an annual taxable income of $60,000, at a marginal rate of 37.12%, who is paid 26 times a year and whose contributions benefit from immediate tax savings on each pay. The calculated amounts are estimates and may vary according to your tax situation.

Most Frequently Asked Questions

Redemptions and withdrawals
What are the eligibility criteria for the HBP?
Basically, you qualify for the HBP if you're buying your first home.
More Details : What are the eligibility criteria for the HBP?
Redemptions and withdrawals
Can my spouse and I each make an HBP redemption request under the HBP?
Absolutely. Each spouse can withdraw up to $25,000 from their RRSP without paying tax.
More Details : Can my spouse and I each make an HBP redemption request under the HBP?
RRSP+
What’s the difference between an RRSP+ at the Fonds de solidarité FTQ and other RRSPs?
Only the RRSP+ with the Fonds offers an additional 30% in tax savings. However, its biggest difference lies in its social impact.
More Details : What’s the difference between an RRSP+ at the Fonds de solidarité FTQ and other RRSPs?
Redemptions and withdrawals
How do I repay my HBP?
You can repay your HBP by recontributing a portion of the amount you withdrew from your RRSP each year. Full repayment must be made within a maximum of 15 years.
More Details : How do I repay my HBP?
Redemptions and withdrawals
How much can I withdraw under the HBP?
You can withdraw the RRSP or spousal RRSP contributions you've made in the last 90 days.
More Details : How much can I withdraw under the HBP?
Redemptions and withdrawals
Can I repay an HBP I took out at another financial institution to an RRSP+ with the Fonds?
Yes. Making your HBP repayment into the RRSP+ with the Fonds offers great benefits.
More Details : Can I repay an HBP I took out at another financial institution to an RRSP+ with the Fonds?

Interested in the HBP?

Contact Shareholder Services to get all the documentation you need and have your file assessed.

1 800 567-3663
Legal Notes

The Fonds de solidarité FTQ’s shareholders will receive 15% in tax credits from the Québec government and 15% from the federal government. They are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.

Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the fondsftq.com website, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.
Prospectus En ( 883 Kb )