Saving for a down payment
Hoping to achieve the dream of home ownership? We can help you get there – whether you have a year to save or more than five. Here’s what you may need to save for a down payment – and how investing can get you there sooner.
Recommended investing options
One of the first things to consider when saving for a down payment is where you’d like to keep your savings.
Investment accounts
Accounts that offer tax incentives and allow you to hold various investments are a great option to help grow your money.
Registered Retirement Savings Plans (RRSPs)
Your money grows on a tax-deferred basis. So you can lower your taxes while saving for a home.
Great for: First time home buyers looking to lower their taxes while saving for retirement or a home.
Tax-Free Savings Accounts (TFSAs)
Your money grows tax-free and can be withdrawn at any time without consequences – such as when you need a down payment for a home.
Great for: Anyone looking for a flexible way to save while for right now and down the road.
First Home Savings Account (FHSA)
Your money can grow tax-free in FHSA towards the purchase of your first home. Plus, you get new contribution room each year, and your contributions are tax-deductible, making it the ideal way to save.
Great for: First-time home buyers looking for a tax-free savings account that can hold various investment types.
Investment types
Choosing the right investments based on your savings timeline is important when saving for a home. Below are two options: GICs for short-term savings and ETFs for long-term investing.
Guaranteed Investment Certificates (GIC)
You choose how long you’d like to save your money for, from just a few months to a few years. GICs are safe and secure – your principal is protected, and depending on the product you choose, you can earn interest during or at the end of your term.
Typical investing horizon: Short- to medium-term
Great for: Anyone who wants to save for a specific amount of time.
Exchange Traded Funds (ETFs)
ETFs are a bucket of securities made up of equities, fixed income and other assets – great for a diversified portfolio.
Typical investing horizon: Medium- to long-term
Great for: Anyone who wants a low-fee investing option.
Did you know?
Whichever account you choose for saving for a down payment can be accessed and managed online or through the BMO Mobile Banking app, any time.
Tips and hints
Know your government perks.
Home Buyers’ Plan › The Homebuyers’ Plan lets you withdraw up to $35,000 ($70,000 per couple) from your RRSP to help you purchase your first home. It’s a great way to access funds to put toward your down payment. Find out how the program works and if it’s the right choice for you and your home purchase.
Helpful tools
Unsure about the right accounts or investment types? Answer a few quick questions and we’ll match you with some investing options.
Try our simple Savings Calculator to find out how much you could save with a CSP (Continuous Savings Plan).
Find out how much you could save with a TFSA account.
Automatic savings contributions make investing easy and help you reach your goals faster. Learn more about our Continuous Savings Plans.
Articles you might find useful
What to Know About First-Time Home Buyer Incentives
Everything you need to know about buying your first home – from tips and tricks to help get you there sooner, to incentives and offers.
When to use RRSPs, TFSAs and RESPs
Registered accounts may seem similar, but they serve different purposes. Read about how these accounts can benefit you most.
5 investing tips for beginners
Start investing on the right foot with these tips.
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