She explained that the FHSA combines advantages like tax-deductible contributions, tax-free investment growth, and the flexibility to hold various investment types, describing it as “like an RRSP and TFSA rolled into one for first-time homebuyers.”
The report shows divided perspectives on mortgage rates. While mortgage rates have fallen over the past year, only 36 percent of prospective homebuyers believe this will improve their ability to buy a home within two years.
Conversely, 39 percent worry that rate changes could make purchasing a home less likely.
Robert Kavcic, senior economist at BMO Capital Markets, characterized the housing market as stabilizing, stating, “The Canadian housing market seems to be going through a transitional phase, with activity picking up on the back of Bank of Canada rate cuts and more available inventory.”
He noted that sales volumes have rebounded from the previous year and prices are stabilizing. While most buyers’ markets are fading, a few areas still show weakness. Kavcic concluded that BMO expects “fairly steady sales and price activity through 2025.”
