How Are TFSAs Related to Real Estate?

Have you been putting money aside in a tax free savings account (TFSA)? Another increase in the annual TFSA limit has been made for 2024, meaning you can put up to $7,000 in an account this year. The back to back increases (2023 and 2024) are due to inflation which have made it harder to save in the first place but if you're able to take advantage of this for you or your family members, get on it! Don't know how to get started? Let me put you in touch with a professional that can help.

How does this benefit your real estate goals? TFSA funds cannot be directly used for purchasing real estate, BUT you can use a TFSA to save for a down payment to use for your real estate objectives. Withdrawing funds are tax-free and also flexible so if you need to access your funds for any reason, including for a real estate purchase, you can withdraw them without incurring tax consequences.

By utilizing your TFSA contribution each year and investing wisely, you can maximize the growth potential of your savings. This can help you accumulate the necessary funds more quickly.

In summary, a TFSA may not be usable for a direct purchase to real estate but it can play a crucial role in supporting your efforts to save for a down payment, generate investment returns, and achieve your real estate objectives to buy a home in New Brunswick. 

Reach out for more tips and tricks to get you ahead of the game.

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