CREA: Average home price in Canada expected to drop 4.8% by end of 2023

Vimal Sivakumar
Published: April 20, 2023

The Canadian Real Estate Association (CREA) has indicated that they expect the average price of a home across Canada to decrease by 4.8% by the end of this year.

This percentage decrease is compared to the average price of a home at the end of 2022.

Based on the CREA’s projections, the process of buying a home will become more affordable for all Canadians, including new immigrants just arriving in this country.

More about buying a home in Canada as a newcomer/permanent resident: FHSAs

A recent move by the Canadian government will now make it easier for newcomers across the country to save up for their first home, thanks to a new tax-free First Home Savings Account (FHSA).

As of April 1 this year, Canadian financial institutions are now able to offer a new kind of savings account to eligible Canadian citizens and permanent residents.

Discover if You Are Eligible for Canadian Immigration

To be eligible for an FHSA, the account holder must be a Canadian resident over the age of 17 that is looking to purchase their first home. FHSA holders are required to keep the account open until the first of these conditions is met:

  • 15 years have passed since opening the account
  • Until the end of the year when they turn 71
  • Until the end of the year following the year when they make “a qualifying withdrawal [from the] FHSA” for the purchase of their first home

The FHSA is Canada’s newest effort to increase the affordability of housing in this country. By giving first-time home buyers the ability to accumulate $40,000 in tax-free savings (max. $8,000 per year for five years), the government is hoping that this will aid Canadians in their efforts to save for a down payment on the home.

In fact, the government estimates project that the FHSA will provide $725 million in support over the coming five years.

Note: FHSA contributions will be tax-deductible and withdrawals for the purchase of a first home will be non-taxable

Other first-time home-buying benefits offered to Canadians

1. First-Time Home Buyer Incentive (FTHBI)

The FTHBI offers five or ten percent of a home’s purchase price to eligible Canadians for use on a down payment for the home. By adding to a down payment, this incentive makes homebuying more affordable by reducing “mortgage carrying costs”.

Note: Mortgage carrying costs are the expenses involved with maintaining a home (in this case, mortgage payments)

Canadian citizens, permanent residents and temporary foreign workers are all eligible for this incentive. Click here to learn more about the FTHBI, including eligibility and incentive conditions.

2. Home Buyers' Plan (HBP)

First-time home buyers buying or building an eligible home in Canada can withdraw up to $35,000 in tax-free dollars (per person) from their RRSP to put toward their first home. The HBP also has a 15-year repayment window.

Eligibility for the HBP requires that the purchased property is occupied as a primary residence for at least the first year and that any contributions made to an RRSP must stay in the account for 90 days.

Find out more about the HBP by clicking this link.

3. Provincial Grants and Incentives

Many provinces/territories across Canada have their own unique grants and incentives for first-time home buyers. A more complete list of these kinds of incentives is available here.

Below are three examples of these programs:

British Columbia’s First-Time Home Buyers’ Program

In British Columbia, this program works to reduce or eliminate property transfer taxes paid by first-time homeowners. Full or partial exemption from this tax is available for qualified purchasers.

Ontario’s Land Transfer Tax Refunds for First-Time Homebuyers

Eligible first-time homebuyers in Ontario who buy land or an interest in land are eligible for a full or partial refund on their land transfer tax. Refunds are now open to all homes in Ontario, including resold homes and new developments.

Nova Scotia’s First-Time Home Buyers’ Rebate Program

This Nova Scotian program offers first-time buyers of newly-built homes a rebate equal to “18.75 percent of the provincial portion of the HST or 1.31 percent of the purchase price of capital stock in a housing cooperative, up to $3,000.”

Discover if You Are Eligible for Canadian Immigration


Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
Report: Canada is the 2nd happiest country among the G7
Happy multigenerational people having fun sitting on grass in a public park
Where do most South Asians live in Canada?
A South Asian family in their living room
Study: Fewer recent immigrants are seeking Canadian citizenship
Young family with children having fun in nature on a picnic
Why fewer French speakers in Canada may help your immigration chances
A woman stands in front of a whiteboard with French verbs written on them.
Top Stories
Study: Immigrants admitted to Canada as children have better education and work outcomes
How an ECA can help you immigrate to Canada
British Columbia and Prince Edward Island issue PNP nominations this week
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Provinces
British Columbia and Prince Edward Island issue PNP nominations this week
From Yellowhead highway, a view of the highest peak in the Canadian Rockies - Mount Robson Provincial Park in British Columbia, Canada.
Where in Canada can I settle: applicants selected by province or territory vs by the federal government
From front to back the flags represent British Columbia, Manitoba, New Brusnwick, Nova Scotia, Quebec and Ontario provinces.
British Columbia and Manitoba invite provincial nominees
A picture of a Canadian flatland with mountains in the back.
Ontario releases 2024 PNP allocation; Three provinces nominate candidates in latest draws
Ontario will invite 21,500 candidates to apply for provincial nomination in 2024
Link copied to clipboard