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▶️ Watch this episode on Youtube
***
EPISODE DESCRIPTION
In this episode, Sarah is joined by Jenna Drummond & Tegan McGinity.
Jenna is a licensed Realtor® from Calgary, Alberta, who's passion lies in helping individuals and families navigate the complexities of buying and selling homes, prioritizing trust, authenticity, and personalized service.
Tegan is an independent Canadian Financial Advisor from Winnipeg, Manitoba, who works 1-on-1 with clients to create a complete financial roadmap that is custom to them and their goals, while remaining simple and easy to follow, giving her clients mental freedom and peace of mind in their financial journey.
In part 1 of a 2 part episode, Jenna and Tegan are here to discuss:
→ The affordability advantage of Calgary's housing market & diverse property types, it's rental market dynamics & investment opportunities, and it's raising appeal to buyers with a growing economy.
→ The tax benefits of having a First Home Savings Account (FHSA), how you can invest with your FHSA, and other new government programs aimed at increasing affordability for first-time buyers.
→ Tips for navigating mortgage options in the current market, understanding the new mortgage refinancing regulations, and insights into the current renewal influx.
Jenna Drummond's Website: www.jennadrummond.com
Jenna Drummond's Instagram: @jennaleighdrummond
Jenna Drummond's YouTube: @jennadrummond
Jenna Drummond's Email: jenna@jennadrummond.com
Tegan McGinity's Instagram: @financewithteg
Tegan McGinity's Email: tegan@financewithteg.com
***
YOUR FIRST HOME FORMULA WEBINAR
On July 30th, Sarah, Jenna, & Tegan will be co-hosting a webinar titled "Your First Home Formula", geared toward first-time homebuyers. This is your chance to get expert advice from experienced professionals in real estate, mortgages, and finances. Whether you’re just starting your journey or seriously considering making your first purchase, this event will provide you with the tools and insights you need to make your homeownership dreams a reality.
For more information and to sign-up to attend, visit: @YourFirstHomeFormula
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CONNECT WITH THE SHOW
🎙️ Alberta Bound Podcast: Alberta Bound: Building Wealth Through Real Estate (in Alberta)
📺 Alberta Bound YouTube: @AlbertaBound-Broker
***
CONNECT WITH SARAH
📸 Sarah Hainsworth's Instagram: @emeraldmortgages
👥 Sarah Hainsworth's Facebook: @SarahHainsworth
📋 Sarah Hainsworth's LinkedIn: @SarahHainsworth
🔗 Emerald Mortgages Website: www.emeraldmortgages.ca
***
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome to the Alberta Boundpodcast.
(00:01):
I'm your host Sarah Hainsworth,mortgage broker and entrepreneur
based out of Alberta.
Today I have the pleasure of
speaking to Jenna Drummond, arealtor in Calgary, Alberta, and
my friend Tegan McGinnity, afinancial advisor.
We are going to chat about allthings when it comes to purchasing
(00:22):
your first home.
This is the first of a two -part
episode with Tegan and Jenna, withpart two airing next week.
Tegan and Jenna and I will also behosting a free online event on
Wednesday, July 30th, titled YourFirst Home.
Home Formula.
So if you're ready to take the
leap into home ownership, we'regoing to provide you with the
(00:43):
tools and insights you need tosucceed.
To find out more information andto sign up, check out the Your
First Home Formula link in theshow notes.
Welcome to the Alberta Boundpodcast.
I'm your host, Sarah Hainsworth,mortgage broker and your guide for
building wealth through realestate in Alberta.
(01:04):
Today, we have the pleasure oftalking with Jenna Drummond.
Why don't you say hello andintroduce yourself?
Hi, everyone.
Thanks so much for having me, so
much for having me, Sarah.
My name is Jenna Drummond.
I am a realtor here in Calgary,and I've been in the industry
since 2017.
So super excited to chat with you
today.
Yeah.
And then we also have Tegan, afinancial advisor.
So why don't you hop on and sayhello, Tegan?
(01:26):
Of course.
Thank you, Sarah.
So yeah, my name is TeganMcGinnity and I'm an independent
financial advisor.
My practice is based in Winnipeg,
Manitoba, but because I workvirtually, I do have clients all
across Canada.
So yeah, I'm super excited to be
here and chat with you guys.
Yeah.
Awesome.
Jenna, what would you say is your
favorite neighborhood in Calgaryand why?
Oh, that is so hard.
(01:47):
I think I would probably say...
out of every neighborhood inCalgary, probably Britannia,
because I just think it's like soposh with like the cute little
shops that they have there.
And it's really close to the
walking pass.
There's a really nice off leash
dog park.
We've got a burn a doodle.
So we just love going around thereand just like walking and grabbing
(02:09):
a coffee and it's so wholesome.
Yeah.
So that's probably my favorite.
Oh, nice.
And what about you, Tegan?Have you been to Calgary even?
I've been to Calgary, been toCalgary, but it was back in high
school.
I had a soccer tournament there.
So I don't know much about theneighborhood specifically, but
it's definitely a nice area.
Like my fiance and I have talked
about maybe moving there one day.
It really depends, you know, like
(02:31):
kids and grandparents and all thatstuff.
But yeah, Calgary in general seemslike a great place to live.
People say it's the... betterversion of Winnipeg, which is
where I live.
So yeah, maybe you guys can help
me learn the best thing.
Yeah, I know.
Yeah, I know.
I know a good realtor in Calgary
that you could talk to.
Perfect, perfect.
Okay, so yeah, let's talk aboutwhat makes Calgary a hotspot for
(02:52):
real estate investing in 2025.
Jenna, do you know like stats on
the affordability in comparison tolet's say BC and Ontario?
Well, so BC and Ontario, they'reseeing some major shifts in the
market right now.
Between the periods of say like
2014 to 2020, their marketincreased a lot and then it
continued to increase.
over the couple years of COVID
(03:14):
too.
So they were seeing between like
10 to 20 % increases year overyear, which is crazy.
So their market stabilizing alittle bit right now, but it is
significantly more expensive thanCalgary.
Like I think the average price ofan apartment condo in Toronto is
like 600 ,000.
So that would get you, it probably
depends on the neighborhood andthe size of the home that you're
(03:37):
looking at.
Average price of a property in
Calgary as of July 2025 is around$760 ,000.
Like there's definitely some thatwould be more so in the $600 ,000
range.
So way more affordable if you look
at it that way.
Condo in downtown Toronto for like
single family home, at least non-condominiumized in Calgary.
What is the average home price inCalgary right now?
(03:59):
right now?So across all property types,
we're sitting at $586 ,000.
The single family homes are
selling on average at 764 ,000.
Semis have increased a lot.
I actually can't believe thatthey're so close to the single
family home price.
So the semi meaning like a half
duplex is sitting just under 700at 696.
Townhouse is sitting right at 450and an apartment condo is sitting
(04:22):
at 333.
So lots of variants, right?
Like lots of different optionsdepending on.
what somebody's affordability isand what their lifestyle is and
what they're looking for.
Okay.
And what type of Calgary propertysaw the largest year over year
decline in benchmark price in2025?
This is kind of a trivia questionbecause I have the answer.
(04:44):
Yeah.
Okay.
Awesome.
I mean, year over year, both
apartments and townhomes are downabout 3%.
Yeah.
Apartment condos, like I said,
there's just so much supply ofthem.
So there's potential for Maybesome more price stabilization
throughout the year, buttownhomes, we don't see as much
supply for them.
So yeah, anyways, both townhomes
and apartments, both down about3%.
(05:05):
Yeah, you're right.
I actually see a lot of people
from Winnipeg, like where I live,moving to Calgary.
There's not many people moving toother provinces.
Even just Calgary as a city, likethat's where everyone's going.
You see people are moving, goingaway.
They're going to Calgary,especially if you're coming from a
(05:26):
place like Winnipeg, where it'smaybe one of the more affordable
places.
It just goes to show that Calgary
is kind of like that next step upwhere it's still affordable, but
you get those extra perks of, likeyou said, the mountains, being in
nature and having those extraamenities.
(05:47):
We have so many job opportunitiesas well.
Like our economy is quite strong.
I mean, it is.
quite dependent on oil and gas,but we're definitely diversifying.
So that just gives us a little bitmore flexibility if oil is
struggling and that part of theeconomy is... just having a little
bit more challenges.
We're definitely seeing more in
the professional services side andtech is starting to become pretty
big in Calgary too, which isreally cool.
I mean, it's a great place to liveor invest.
(06:10):
I think that there's a lot ofopportunities right now.
There's a lot of supply on themarket compared to a year ago.
So there's so many opportunitiesof people who need to sell.
And so investors or first timehome buyers, like you could get a
good deal right now.
Like who knows what the market
will do, but if... interest ratesdo decrease, that will likely
(06:30):
bring more buyers to the market,which could mean more competition,
which could mean less deals.
So there's like this really unique
window of opportunity right now.
So it'll be interesting to see
what happens.
So I have a question for you, I
have a question for you, Jenna, ifyou could buy any property in
Calgary, what would it be?Would it be like a downtown condo,
a fixer upper or like a luxuryhome?
Good question.
(06:51):
I personally am somebody who I
don't really live like Outside ofmy means.
So I don't think I would go luxurybecause I think I would rather
have a little bit more flexibilityin my lifestyle probably than like
maxing my budget.
But I would probably purchase a
single family home because I don'treally want the condo fees.
So single family home or maybe aduplex, right?
There's lots of opportunitieswhere they are non condominium
eyes, but you're an attachedproduct.
(07:12):
I think you want something that isclose to amenities.
And I mean, For me, I like I said,I love the walking path.
So it has to be something kind ofclose distance to like the river
or something.
But there's so many communities in
Calgary that have that kind offeature, which is great.
I think Calgary is one of thosecities where they really focus on
(07:33):
like green spaces and parks andlike everything in each community,
which is really nice.
I think if I was to invest, I
would probably look at a townhousethat has low condo fees.
simply because townhomes are moreso in the 400 ,000, 450 range.
So they're a little bit moreaffordable than your single family
home, which, you know, goes upincrementally.
But you might find something thatsay $450 ,000 with condo fees of
(07:56):
like $300 a month.
And that's not horrible.
So I think, you know, especiallyif it's an investment and you've
got long -term tenants in there.
You don't really want them to be
dealing with any lawn maintenanceor snow removal or things like
that.
It just, you know, is a little bit
more taken care of, lessmaintenance for you.
Yeah.
(08:16):
So that's usually what I'm
recommending to my clients if theyhave that little bit higher of a
budget than an apartment condo.
So with the investment side of
things, how is the rental marketin Calgary?
Calgary?It's shifted a little bit.
We had a really strong rentalmarket for the past couple of
(08:37):
years, and we're definitely seeinga little bit more supply come on,
which is interesting because I dofeel like within the past two
years, a lot of the rentalproperties did end up selling.
So I thought that there was goingto be a bit of a shortage for
rentals, but there's a lot of newconstruction happening in Calgary
in terms of purpose -built rental.
So lots of buildings that are
strictly just rental.
units.
So that is increasing the supply alittle bit.
(08:59):
But overall, it's still verystrong.
Like our rents have maybedecreased a little bit, but our
vacancy is not very high.
Still lots of options.
Sarah, I feel like you should talkabout what you're seeing in terms
of like mortgages.
Are you seeing a ton of
refinancing?Like what do you think is going to
happen?Obviously, nobody has a crystal
ball, but I'd be really curious tohear your perspective or your
insights on what you think.
could happen for the next six
months of the year, even because2025 has been crazy.
(09:21):
Gosh, I know it has been crazy.
So to be fair, I think we are
going to see a couple moredecreases in interest rates.
That's what experts are saying.
But again, we don't ever really
know.
I can tell you from the like
variable rate side, it kind of hasbeen fluctuating in the broker
channel.
And right now we are seeing some
deeper discounts which iswonderful not quite as deep as
(09:42):
they were let's say four monthsago but they are there which is
good and then obviously the fixedrates follow the bond yield and so
that one is tricky like I don'tknow what's happening in Canada
right now I think like most of usthings are kind of up in the air
with our economy so we'll have tohold tight and see what happens
there but as far as renewals like2020, it's crazy to think that
(10:03):
that was now five years ago,right?
Yeah.
But we're now seeing the people
that secured those low rates,which is amazing.
But also some people were able topurchase properties that they
should have never had anopportunity to purchase.
And they're coming up for renewaland they're scrambling because
their interest rate is going todouble, if not more.
So I think in the mortgage side ofthings, I mean, it's a great
(10:27):
opportunity for me to help clientslook at what they have for
options.
I don't think everybody knows that
there are options.
You generally get your renewal
letter, you see it, you sign it,and then that's it.
But people are really missing anopportunity by not taking a deeper
look or having a specialist lookat that renewal and say, hey, does
this make sense?Is there an opportunity to not
only save money on an interestrate, but maybe we can roll in
(10:51):
some additional debts that they'veacquired over the last five years?
So that's a big part of mybusiness right now is renewals.
I mean, we're in Alberta, so thereare a lot of purchases happening
right now.
But again, renewals are a huge
part of business.
And yeah, I think 2025 has been a
big year for that.
Do you see a lot of people
(11:12):
reaching out to you because theyhave a lot of debt that they want
to roll into their mortgages?you see a lot of people reaching
out to you because they have a lotof debt that they want to roll
into mortgages?There are some people that are
struggling.
Yeah, I feel like in Alberta, we
have such a unique opportunityhere because our cost of living is
lower.
We literally just got an income
(11:34):
tax break.
So people all across Alberta are
now paying less income tax.
We only have 5 % for GST.
We don't have that 13 % in otherprovinces.
Yes, we accumulate debt.
I don't think it's in the same
capacity as, let's say, BC orOntario.
The land transfer tax.
There's so many savings.
Yes.
It's wild how Alberta has just
become this hotspot and thiscentral area, which is why Calgary
(11:55):
is such a beautiful place andpeople can go.
you're like an hour from themountains maybe less what is it
like three hundred thousanddollars cheaper than buying like a
single family home in bc i don'tknow oh god a single family home
in bc is like 1 .3 1 .5 crazy itis crazy like even in like oh god
a single family home in bc is like1 .3 1 .5 crazy it is crazy like
even in like Lower mainlandVancouver, like Langley, Maple
Ridge, well over an hour todowntown Vancouver.
So you're definitely in thesuburbs.
(12:16):
Like the townhouse market, I thinkis like just under a million,
probably.
So to get something that's single
family or standalone, probably inthe 1 .5 range, which is crazy.
like Yeah.
And what about you, Tegan?
I guess we could talk a little bitabout affordability in Winnipeg.
What are you seeing over there?Yeah, like I'm not a realtor in
(12:38):
the sense where... pay attentiontoo much, but I mean, pricing has
obviously gone up with everything.
You know, you could get a house
for 250, obviously not the besthouse, but now those are closer to
like 300 or 350.
Right.
And so.
It is going up for pricing.
And so people do have to budget alot more to save.
But there has been like recentrollouts, which I'm sure you're
familiar with, where, you know,sometimes first time home buyers
can get a 30 year amortizationperiod instead of 25 years.
(13:02):
So that's going to make it a lotmore affordable for the newer
generations growing up in a marketwhere real estate is becoming more
and more expensive.
harder to get into.
Yeah, so let's talk a little bitabout the benefits to being a
first -time home buyer right now.
There are some savings accounts
that I think clients should accessand maybe you can speak a little
(13:22):
bit on those.
Of course.
course.
So basically the best account
right now is the first homesavings account.
So it's basically a hybrid betweenyour RRSP and your TFSA.
Because normally with your RRSP,basically how that works is if you
put money into it, you will get atax rebate because you're
basically deferring paying taxeson that amount until you take it
out later.
old school way of doing it was you
(13:44):
could use the home buyer's plan toaccess your RRSP money.
for a down payment on your house,but you did have to pay that back
over time.
Whereas now with the first home
savings account, you do get a taxrebate if you put into it, but you
can take it out tax -free, like aTFSA in a sense, and use it
towards a house without having topay it back.
So it's a really strong tool ifyou are saving for a house.
(14:06):
And there is a guideline, is it $8,000 per year from the time that
the account is set up?Yes, so you get $8 ,000.
per year but exactly you have toopen the account first whereas you
know something like a TFSA youknow ever since it became a thing
everybody starts gainingcontribution room once they turn
18 whereas the first home savingsaccount you only start gaining
(14:30):
that room once you open it so evenif you're at a point where you're
like oh I might not buy a housefor like another five years It's
still smart to open the accountbecause then you will start
gaining that contribution room andyou can carry forward one year of
unused room.
So let's say you open the account
this year, you get $8 ,000.
If you don't use it next year,
(14:52):
you'll get $16 ,000 of room.
But if you wait until you're ready
to buy a house and you're like,okay, I'm going to buy a house
this year.
I'm going to open my FHSA.
You're only going to be able totake advantage of $8 ,000 of that
benefit rather than you could havehad $16 ,000.
Yeah, if clients are, let's say,getting help with their down
payment from their parents, wouldthe parents be able to gift them
(15:14):
some money that they could thenput into that savings account and
then help them with the benefit ofit?
Yeah, I don't see why not.
Like obviously you have to be
careful on like the accountingside if there's any rules with
gifting money and whatnot.
But really like any amount of
money you could technically put inthere.
I don't know if this is offside ornot, but like even in the sense
(15:35):
where you could technically takemoney from a line of credit and
you could put that into your FHSA,right?
You're going to have to put thatline of credit back.
But if you're in a pinch and youwant to get the advantage of the
FHSA, you technically could.
Same with gifts.
You can always go back and dothat.
And let's say you had moneysitting in like a TFSA or you
didn't have the money from yourparents yet.
(15:55):
You know, you signed the saleagreement for the house.
It's not too late to put into yourFHSA.
You can go, OK, take that moneyfrom your TFSA, put it into the
first home savings account or takethe gift from your parents and
throw it in there so that you canget that tax break.
And then you have time rightbefore the final deposit's due.
to then funnel that through yourFHSA and do that withdrawal.
(16:16):
Is there any amount of time thatthe money has to be sitting in the
HFSA?Is there any amount of time that
the money has to be sitting in theHFSA?
Because I know like when Ipurchased my home in 2021, we did
take money from my RRSP and themoney had to be in there for 90
days.
So I'm just curious like how that
works for the FHSA.
Yeah, so from my understanding and
everything that I read online onlike the government website and
(16:37):
everything, there is no minimum.
Cool.
Like some institutions will havelike a hold where they need to
make sure that that deposit youmade isn't.
going to rebound right to makesure you actually have the money
there but basically once themoney's in there and then it's
good to go then you can initiate awithdrawal maybe i'll speak a
little bit on that too from themortgage side of things whenever
clients are moving down paymentsaround it does get a little
(16:57):
tedious in proving where thatmoney comes from so making sure
that you talk to your brokerbefore you start moving things
around is important becauselenders follow the down payment
like a bouncy ball so if it's inthis account and and then this
account, i'll speak a little biton that too from the mortgage side
of things whenever clients aremoving down payments around it
does get a little tedious inproving where that money comes
from so making sure that you talkto your broker before you start
moving things around is importantbecause lenders follow the down
payment like a bouncy ball so ifit's in this account and and then
(17:22):
this account, and then thataccount, we need to know every
single account that it touches.
And we need to have a 90 day
statement for each of thoseaccounts.
So that's important, I think, toto note, right?
Okay, and I guess in the 90 days,is that in the sense, like, you
just need to make sure they hadaccess to that money within 90
days, like they didn't justinherit that money within like 30
days it depends on the lender andwhat their guidelines are some of
(17:44):
them is 30 but for the majority ofthem is 90 and it's for anti
-money laundering laws so we needto make sure that that money isn't
being laundered and the best wayto do that is to see it in the
account for a minimum of 90 days30 days it depends on the lender
and what their guidelines are someof them is 30 but for the majority
of them is 90 and it's for anti-money laundering laws so we need
(18:09):
to make sure that that money isn'tbeing laundered and the best way
to do that is to see it in theaccount for a minimum of 90 days
Okay.
So basically, once you start
actually house hunting, you shouldmake sure your money's in the
right spot.
Yeah.
I actually had a client who waskind of looking for a house, but
she wasn't in a rush.
And then her mom's a realtor.
And so an off -market deal cameup.
And so she just jumped on it.
And she messaged me and was like,
okay, I gotta take my money out.
And I was like, hold on, your
money's still in your TFSA.
We need to put it into your...
FHSA so you can get this taxbreak.
Like this is kind of what we'vebeen waiting for.
And we thought it was maybe almosttoo late because things were
moving so quickly.
(18:29):
But we were able to do the TFSA
withdrawal and then put that intoher FHSA.
Now, I mean, everything wentthrough, so that lender must be
okay with it.
She had the funds there to prove
that she had them right.
And because we were able to
actually do this, she's expectedto save like $6 ,000 in taxes next
year.
Whereas if we didn't put in that
effort and it was like, oh,whatever, let's just, doesn't
(18:50):
matter.
She would have lost out on those
savings.
Well, I think that's where it's
important to be working with agood accountant also, because when
it comes tax time, they're theones that are dealing with that
side of the transaction.
And so having somebody in your
corner is super important.
Tegan, I've got a question for you
in terms of investing in thosehome savings accounts.
So I'm aware that you can investmoney that's sitting in your RRSP
or your TFSA.
Those are kind of just the
accounts or like the vehicles, butyou can have investments.
within those to help thoseaccounts grow.
So I'm curious to know what yoursuggestions are and if you can
also invest money that's sittingin your FHSA.
Yes.
So kind of like what you said,
they are vehicles, right?So they're all investment accounts
(19:11):
or you can use them to invest.
So the only difference is how
they're taxed, right?So you can invest your FHSA in the
exact same stocks or funds as yourTFSA or your RSV, right?
And it'll... grow the same.
The only difference is that
taxation.
And then when you're deciding how
you want to invest it, a big partof that is that timeframe.
So it's really important to know,or at least have a general idea of
(19:31):
how long until you're expecting tobuy a house, right?
And that can come with meetingwith both of you, right?
To see, you know, with Sarah.
How much money do I need to save
for a down payment?Right.
And then we can see, you know,what's in the market.
What do I want to go for?And then you can reverse engineer
that to figure out, OK, well, howmuch do I need to save or how much
(19:53):
can I save?Right.
Like if you want to buy a house intwo years and you have to save
five hundred dollars a month, butyou don't have enough money.
Right.
It might just take you a bit
longer.
Right.
So but that time frame is reallyimportant because basically the
risk level of your portfolio,which basically is.
what percentage is stocks andmaybe what percentage is bonds,
(20:14):
right?Higher risk or lower risk?
Usually higher risk has morefluctuations, so more ups and
downs.
Bonds are lower, so less
fluctuation.
So the timeframe is really going
to tell you how much up and downyou can afford to take because
similar with like an emergencyfund, you don't really want that
attached to the stock marketbecause The last thing you want is
(20:34):
to need to pull that money outwhen the market's down, right?
You want to be able to wait for itto recover.
So if you're, let's say, buying ahouse like this year, you probably
don't want to put in the stockmarket because things are going up
and down all the time, right?But if you have a couple years,
you could potentially put it inthe stock market, but maybe not as
(20:58):
aggressive or as high risk as youwould say like your retirement
money.
money.
Interesting.
I had no clue, but I was listening
to a podcast yesterday about...
just like purchasing a home and
goals and, you know, like theinvesting side of it.
And I was like, huh, I wonder ifyou could do that.
So that's really interesting.
Are you seeing a lot of people do
that?Or do they feel like it's a little
bit too risky?I mean, I know it's a relatively
(21:19):
new account.
So I don't know.
Yeah, I mean, it really justdepends on the timeframe, really,
like the clients that I meet with,we always go through like
investment basics.
So I take them through, you know,
You're probably going to see moreups and downs with the stock
market if you invest this way.
And this is how we diversify to
reduce risk.
So I give them a good
understanding.
And so if it is a couple of years
away, they are usually very opento investing it because we set it
(21:42):
up to reflect that.
Right.
But then again, I do have a lot ofpeople that are like, oh, well,
I'm probably buying within thisyear, maybe next year.
But if something comes up thatcatches my eye, I want to be able
to jump on it.
Right.
And so if it's that close, usuallyyou can attach like a high
interest savings fund.
So let's say you just use a high
interest savings account.
Right.
You're going to earn some intereston that money while it sits there
(22:04):
and it's protected from the stockmarket, but it's not in your.
for some savings accounts.
You're not going to get that tax
rebate.
So there is a lot of options to
use your FHSA.
And instead of attaching, you
know, an investment fund to it,you attach the high interest
savings fund.
So it's very similar to a high
interest savings account where youreceive that interest rate.
That interest rate can change justlike how mortgage rates change
(22:24):
and, you know, the bond rateschange.
But that amount's not going to godown.
It'll only go up.
So that's a nice secure spot to
even get like a little bit morebang for your buck, right?
While the money's sitting there,if you put eight grand in, well,
maybe it grows by a couple hundredor something by the time that
you're ready to use it.
So yeah, it's a lot reflective of
timeframe, but.
Yeah, you can invest it if you
(22:45):
want to, if it's like a longerperiod of time.
Cool.
Yeah.
I guess getting that account setup as soon as you turn 18 is a
huge benefit, right?I guess yes and no. It's more so
depends on how long until you'reexpecting to buy a house because
you can only carry forward oneyear of unused contribution room.
Whereas with the TFSA, itaccumulates once you're 18.
If you got $6 ,000 that year, $6,000 that year, $6 ,000.
Let's say you've never used yourTFSA since you were 18 and you're
(23:05):
like 30.
Well, you've accumulated a lot.
But with the FHSA, you can onlycarry forward that $8 ,000.
And so, I mean, if you open it at18 and you plan to buy a house in
two years, then yes, open it.
But it's not going to make a huge
difference if you're not savingright away.
If you do technically startputting money in at 18, that can
have a... I don't know, funnelingeffect over the years in that
(23:26):
sense.
But it really just depends on how
much are you going to be puttingin there and how long until you
expect to buy a house.
And that will determine when you
should really open it.
It doesn't hurt to open it as soon
as possible because then it'sthere when you're ready to use it.
So the government did put out anew program.
government did put out a newprogram.
And basically, first -timehomebuyers can save the GST up to
(23:48):
$50 ,000.
which is huge.
You said you bought in 2021.
Obviously, you paid the GST, so
that's not accessible for you, butit can be a huge savings for
clients.
Yes, I'll touch on that a little
bit.
The federal government hasn't
given too much information on whatthat exactly looks like right now.
So I actually have a pretty strongpartnership with a builder here in
Calgary.
And everyone is asking about this,
you know, GST rebate, it's a hugesavings.
(24:09):
So everybody wants to know how itworks.
And we're still waiting, we'restill waiting for some
information.
But basically, until further
notice, the way that it would workis the client would still have to
qualify for the full price.
And then like basically go back to
the government and request therebate of say $30 ,000, for
example.
So it would be kind of like an
after fact, which is great.
(24:29):
Like that's a huge amount in
savings.
But like say that they can only
qualify for the $670 ,000 house.
They can't go buy that $700 ,000
house, you know, because theystill have to qualify at the other
number.
So it's going to be really
interesting.
I hope that they allow the builder
to like apply for the GST rebateon the buyer's behalf, because
then that would... allow thebuilders just take the money right
(24:50):
off the price so yeah we'll seewhat happens with it yeah i think
there's so many governmentprograms that have rolled out in
the last even let's say six monthsbut they don't have the details to
support how we access them likehouse hacking is huge so having
the ability to refinance aninsured loan and suite the
property was a really greatprogram but it hasn't really been
(25:11):
I'll i think there's so manygovernment programs that have
rolled out in the last even let'ssay six months but they don't have
the details to support how weaccess them like house hacking is
huge so having the ability torefinance an insured loan and
suite the property was a reallygreat program but it hasn't really
been accessed yet.
So that's another one that we have
to wait and see what they say.
And then I guess go from there.
(25:33):
So are there new rules coming?Cause like refinancing your house,
pulling out equity and then doingrenovations, whether it's a suite
or not.
I feel like that's been around for
a long time, but I guess, are theyimplementing like additional?
Yeah.
or So normally an insured loan
becomes uninsurable when you pullthe equity.
And what they offered is that youcan refinance up to 95%.
And so that's huge becausenormally you can only refinance up
(25:54):
to 80%, leaving 20 % equity in theproperty.
But giving clients access to thisadditional 15 % is kind of what
was beneficial.
And then on top of it, you can use
the potential rental income toqualify for that loan.
Right.
Well, that's super interesting.
I always kind of thought about howit was interesting how you can buy
a house, I mean, depending on howmuch it costs, but it's pretty
(26:16):
possible to get 5 % down inWinnipeg.
So you can buy a house with 5 %down, but if you want to refinance
and take money to renovate, youneed 20%.
So it's just interesting that theywould give you a mortgage for 5%,
but they won't give you amortgage.
5 % if you pull the equity out.
So it's interesting that they're
rolling that out now because thatdefinitely makes more sense.
The difference is that it becomesuninsurable once it is a
(26:38):
refinance.
uninsurable once it is a
refinance.
And so the kicker is that the
insurers are still going to insureit.
Previously, they wouldn't.
So now it's less risky, right?
So they will go up to 95 % becauseit's still insured.
And I think that's what makes allthe difference.
Welcome to the Alberta Boundpodcast.
(00:01):
I'm your host Sarah Hainsworth,mortgage broker and entrepreneur
based out of Alberta.
Today I have the pleasure of
speaking to Jenna Drummond, arealtor in Calgary, Alberta, and
my friend Tegan McGinnity, afinancial advisor.
We are going to chat about allthings when it comes to purchasing
(00:22):
your first home.
This is the first of a two -part
episode with Tegan and Jenna, withpart two airing next week.
Tegan and Jenna and I will also behosting a free online event on
Wednesday, July 30th, titled YourFirst Home.
Home Formula.
So if you're ready to take the
leap into home ownership, we'regoing to provide you with the
(00:43):
tools and insights you need tosucceed.
To find out more information andto sign up, check out the Your
First Home Formula link in theshow notes.
Welcome to the Alberta Boundpodcast.
I'm your host, Sarah Hainsworth,mortgage broker and your guide for
building wealth through realestate in Alberta.
(01:04):
Today, we have the pleasure oftalking with Jenna Drummond.
Why don't you say hello andintroduce yourself?
Hi, everyone.
Thanks so much for having me, so
much for having me, Sarah.
My name is Jenna Drummond.
I am a realtor here in Calgary,and I've been in the industry
since 2017.
So super excited to chat with you
today.
Yeah.
And then we also have Tegan, afinancial advisor.
So why don't you hop on and sayhello, Tegan?
(01:26):
Of course.
Thank you, Sarah.
So yeah, my name is TeganMcGinnity and I'm an independent
financial advisor.
My practice is based in Winnipeg,
Manitoba, but because I workvirtually, I do have clients all
across Canada.
So yeah, I'm super excited to be
here and chat with you guys.
Yeah.
Awesome.
Jenna, what would you say is your
favorite neighborhood in Calgaryand why?
Oh, that is so hard.
(01:47):
I think I would probably say...
out of every neighborhood inCalgary, probably Britannia,
because I just think it's like soposh with like the cute little
shops that they have there.
And it's really close to the
walking pass.
There's a really nice off leash
dog park.
We've got a burn a doodle.
So we just love going around thereand just like walking and grabbing
(02:09):
a coffee and it's so wholesome.
Yeah.
So that's probably my favorite.
Oh, nice.
And what about you, Tegan?Have you been to Calgary even?
I've been to Calgary, been toCalgary, but it was back in high
school.
I had a soccer tournament there.
So I don't know much about theneighborhood specifically, but
it's definitely a nice area.
Like my fiance and I have talked
about maybe moving there one day.
It really depends, you know, like
(02:31):
kids and grandparents and all thatstuff.
But yeah, Calgary in general seemslike a great place to live.
People say it's the... betterversion of Winnipeg, which is
where I live.
So yeah, maybe you guys can help
me learn the best thing.
Yeah, I know.
Yeah, I know.
I know a good realtor in Calgary
that you could talk to.
Perfect, perfect.
Okay, so yeah, let's talk aboutwhat makes Calgary a hotspot for
(02:52):
real estate investing in 2025.
Jenna, do you know like stats on
the affordability in comparison tolet's say BC and Ontario?
Well, so BC and Ontario, they'reseeing some major shifts in the
market right now.
Between the periods of say like
2014 to 2020, their marketincreased a lot and then it
continued to increase.
over the couple years of COVID
(03:14):
too.
So they were seeing between like
10 to 20 % increases year overyear, which is crazy.
So their market stabilizing alittle bit right now, but it is
significantly more expensive thanCalgary.
Like I think the average price ofan apartment condo in Toronto is
like 600 ,000.
So that would get you, it probably
depends on the neighborhood andthe size of the home that you're
(03:37):
looking at.
Average price of a property in
Calgary as of July 2025 is around$760 ,000.
Like there's definitely some thatwould be more so in the $600 ,000
range.
So way more affordable if you look
at it that way.
Condo in downtown Toronto for like
single family home, at least non-condominiumized in Calgary.
What is the average home price inCalgary right now?
(03:59):
right now?So across all property types,
we're sitting at $586 ,000.
The single family homes are
selling on average at 764 ,000.
Semis have increased a lot.
I actually can't believe thatthey're so close to the single
family home price.
So the semi meaning like a half
duplex is sitting just under 700at 696.
Townhouse is sitting right at 450and an apartment condo is sitting
(04:22):
at 333.
So lots of variants, right?
Like lots of different optionsdepending on.
what somebody's affordability isand what their lifestyle is and
what they're looking for.
Okay.
And what type of Calgary propertysaw the largest year over year
decline in benchmark price in2025?
This is kind of a trivia questionbecause I have the answer.
(04:44):
Yeah.
Okay.
Awesome.
I mean, year over year, both
apartments and townhomes are downabout 3%.
Yeah.
Apartment condos, like I said,
there's just so much supply ofthem.
So there's potential for Maybesome more price stabilization
throughout the year, buttownhomes, we don't see as much
supply for them.
So yeah, anyways, both townhomes
and apartments, both down about3%.
(05:05):
Yeah, you're right.
I actually see a lot of people
from Winnipeg, like where I live,moving to Calgary.
There's not many people moving toother provinces.
Even just Calgary as a city, likethat's where everyone's going.
You see people are moving, goingaway.
They're going to Calgary,especially if you're coming from a
(05:26):
place like Winnipeg, where it'smaybe one of the more affordable
places.
It just goes to show that Calgary
is kind of like that next step upwhere it's still affordable, but
you get those extra perks of, likeyou said, the mountains, being in
nature and having those extraamenities.
(05:47):
We have so many job opportunitiesas well.
Like our economy is quite strong.
I mean, it is.
quite dependent on oil and gas,but we're definitely diversifying.
So that just gives us a little bitmore flexibility if oil is
struggling and that part of theeconomy is... just having a little
bit more challenges.
We're definitely seeing more in
the professional services side andtech is starting to become pretty
big in Calgary too, which isreally cool.
I mean, it's a great place to liveor invest.
(06:10):
I think that there's a lot ofopportunities right now.
There's a lot of supply on themarket compared to a year ago.
So there's so many opportunitiesof people who need to sell.
And so investors or first timehome buyers, like you could get a
good deal right now.
Like who knows what the market
will do, but if... interest ratesdo decrease, that will likely
(06:30):
bring more buyers to the market,which could mean more competition,
which could mean less deals.
So there's like this really unique
window of opportunity right now.
So it'll be interesting to see
what happens.
So I have a question for you, I
have a question for you, Jenna, ifyou could buy any property in
Calgary, what would it be?Would it be like a downtown condo,
a fixer upper or like a luxuryhome?
Good question.
(06:51):
I personally am somebody who I
don't really live like Outside ofmy means.
So I don't think I would go luxurybecause I think I would rather
have a little bit more flexibilityin my lifestyle probably than like
maxing my budget.
But I would probably purchase a
single family home because I don'treally want the condo fees.
So single family home or maybe aduplex, right?
There's lots of opportunitieswhere they are non condominium
eyes, but you're an attachedproduct.
(07:12):
I think you want something that isclose to amenities.
And I mean, For me, I like I said,I love the walking path.
So it has to be something kind ofclose distance to like the river
or something.
But there's so many communities in
Calgary that have that kind offeature, which is great.
I think Calgary is one of thosecities where they really focus on
(07:33):
like green spaces and parks andlike everything in each community,
which is really nice.
I think if I was to invest, I
would probably look at a townhousethat has low condo fees.
simply because townhomes are moreso in the 400 ,000, 450 range.
So they're a little bit moreaffordable than your single family
home, which, you know, goes upincrementally.
But you might find something thatsay $450 ,000 with condo fees of
(07:56):
like $300 a month.
And that's not horrible.
So I think, you know, especiallyif it's an investment and you've
got long -term tenants in there.
You don't really want them to be
dealing with any lawn maintenanceor snow removal or things like
that.
It just, you know, is a little bit
more taken care of, lessmaintenance for you.
Yeah.
(08:16):
So that's usually what I'm
recommending to my clients if theyhave that little bit higher of a
budget than an apartment condo.
So with the investment side of
things, how is the rental marketin Calgary?
Calgary?It's shifted a little bit.
We had a really strong rentalmarket for the past couple of
(08:37):
years, and we're definitely seeinga little bit more supply come on,
which is interesting because I dofeel like within the past two
years, a lot of the rentalproperties did end up selling.
So I thought that there was goingto be a bit of a shortage for
rentals, but there's a lot of newconstruction happening in Calgary
in terms of purpose -built rental.
So lots of buildings that are
strictly just rental.
units.
So that is increasing the supply alittle bit.
(08:59):
But overall, it's still verystrong.
Like our rents have maybedecreased a little bit, but our
vacancy is not very high.
Still lots of options.
Sarah, I feel like you should talkabout what you're seeing in terms
of like mortgages.
Are you seeing a ton of
refinancing?Like what do you think is going to
happen?Obviously, nobody has a crystal
ball, but I'd be really curious tohear your perspective or your
insights on what you think.
could happen for the next six
months of the year, even because2025 has been crazy.
(09:21):
Gosh, I know it has been crazy.
So to be fair, I think we are
going to see a couple moredecreases in interest rates.
That's what experts are saying.
But again, we don't ever really
know.
I can tell you from the like
variable rate side, it kind of hasbeen fluctuating in the broker
channel.
And right now we are seeing some
deeper discounts which iswonderful not quite as deep as
(09:42):
they were let's say four monthsago but they are there which is
good and then obviously the fixedrates follow the bond yield and so
that one is tricky like I don'tknow what's happening in Canada
right now I think like most of usthings are kind of up in the air
with our economy so we'll have tohold tight and see what happens
there but as far as renewals like2020, it's crazy to think that
(10:03):
that was now five years ago,right?
Yeah.
But we're now seeing the people
that secured those low rates,which is amazing.
But also some people were able topurchase properties that they
should have never had anopportunity to purchase.
And they're coming up for renewaland they're scrambling because
their interest rate is going todouble, if not more.
So I think in the mortgage side ofthings, I mean, it's a great
(10:27):
opportunity for me to help clientslook at what they have for
options.
I don't think everybody knows that
there are options.
You generally get your renewal
letter, you see it, you sign it,and then that's it.
But people are really missing anopportunity by not taking a deeper
look or having a specialist lookat that renewal and say, hey, does
this make sense?Is there an opportunity to not
only save money on an interestrate, but maybe we can roll in
(10:51):
some additional debts that they'veacquired over the last five years?
So that's a big part of mybusiness right now is renewals.
I mean, we're in Alberta, so thereare a lot of purchases happening
right now.
But again, renewals are a huge
part of business.
And yeah, I think 2025 has been a
big year for that.
Do you see a lot of people
(11:12):
reaching out to you because theyhave a lot of debt that they want
to roll into their mortgages?you see a lot of people reaching
out to you because they have a lotof debt that they want to roll
into mortgages?There are some people that are
struggling.
Yeah, I feel like in Alberta, we
have such a unique opportunityhere because our cost of living is
lower.
We literally just got an income
(11:34):
tax break.
So people all across Alberta are
now paying less income tax.
We only have 5 % for GST.
We don't have that 13 % in otherprovinces.
Yes, we accumulate debt.
I don't think it's in the same
capacity as, let's say, BC orOntario.
The land transfer tax.
There's so many savings.
Yes.
It's wild how Alberta has just
become this hotspot and thiscentral area, which is why Calgary
(11:55):
is such a beautiful place andpeople can go.
you're like an hour from themountains maybe less what is it
like three hundred thousanddollars cheaper than buying like a
single family home in bc i don'tknow oh god a single family home
in bc is like 1 .3 1 .5 crazy itis crazy like even in like oh god
a single family home in bc is like1 .3 1 .5 crazy it is crazy like
even in like Lower mainlandVancouver, like Langley, Maple
Ridge, well over an hour todowntown Vancouver.
So you're definitely in thesuburbs.
(12:16):
Like the townhouse market, I thinkis like just under a million,
probably.
So to get something that's single
family or standalone, probably inthe 1 .5 range, which is crazy.
like Yeah.
And what about you, Tegan?
I guess we could talk a little bitabout affordability in Winnipeg.
What are you seeing over there?Yeah, like I'm not a realtor in
(12:38):
the sense where... pay attentiontoo much, but I mean, pricing has
obviously gone up with everything.
You know, you could get a house
for 250, obviously not the besthouse, but now those are closer to
like 300 or 350.
Right.
And so.
It is going up for pricing.
And so people do have to budget alot more to save.
But there has been like recentrollouts, which I'm sure you're
familiar with, where, you know,sometimes first time home buyers
can get a 30 year amortizationperiod instead of 25 years.
(13:02):
So that's going to make it a lotmore affordable for the newer
generations growing up in a marketwhere real estate is becoming more
and more expensive.
harder to get into.
Yeah, so let's talk a little bitabout the benefits to being a
first -time home buyer right now.
There are some savings accounts
that I think clients should accessand maybe you can speak a little
(13:22):
bit on those.
Of course.
course.
So basically the best account
right now is the first homesavings account.
So it's basically a hybrid betweenyour RRSP and your TFSA.
Because normally with your RRSP,basically how that works is if you
put money into it, you will get atax rebate because you're
basically deferring paying taxeson that amount until you take it
out later.
old school way of doing it was you
(13:44):
could use the home buyer's plan toaccess your RRSP money.
for a down payment on your house,but you did have to pay that back
over time.
Whereas now with the first home
savings account, you do get a taxrebate if you put into it, but you
can take it out tax -free, like aTFSA in a sense, and use it
towards a house without having topay it back.
So it's a really strong tool ifyou are saving for a house.
(14:06):
And there is a guideline, is it $8,000 per year from the time that
the account is set up?Yes, so you get $8 ,000.
per year but exactly you have toopen the account first whereas you
know something like a TFSA youknow ever since it became a thing
everybody starts gainingcontribution room once they turn
18 whereas the first home savingsaccount you only start gaining
(14:30):
that room once you open it so evenif you're at a point where you're
like oh I might not buy a housefor like another five years It's
still smart to open the accountbecause then you will start
gaining that contribution room andyou can carry forward one year of
unused room.
So let's say you open the account
this year, you get $8 ,000.
If you don't use it next year,
(14:52):
you'll get $16 ,000 of room.
But if you wait until you're ready
to buy a house and you're like,okay, I'm going to buy a house
this year.
I'm going to open my FHSA.
You're only going to be able totake advantage of $8 ,000 of that
benefit rather than you could havehad $16 ,000.
Yeah, if clients are, let's say,getting help with their down
payment from their parents, wouldthe parents be able to gift them
(15:14):
some money that they could thenput into that savings account and
then help them with the benefit ofit?
Yeah, I don't see why not.
Like obviously you have to be
careful on like the accountingside if there's any rules with
gifting money and whatnot.
But really like any amount of
money you could technically put inthere.
I don't know if this is offside ornot, but like even in the sense
(15:35):
where you could technically takemoney from a line of credit and
you could put that into your FHSA,right?
You're going to have to put thatline of credit back.
But if you're in a pinch and youwant to get the advantage of the
FHSA, you technically could.
Same with gifts.
You can always go back and dothat.
And let's say you had moneysitting in like a TFSA or you
didn't have the money from yourparents yet.
(15:55):
You know, you signed the saleagreement for the house.
It's not too late to put into yourFHSA.
You can go, OK, take that moneyfrom your TFSA, put it into the
first home savings account or takethe gift from your parents and
throw it in there so that you canget that tax break.
And then you have time rightbefore the final deposit's due.
to then funnel that through yourFHSA and do that withdrawal.
(16:16):
Is there any amount of time thatthe money has to be sitting in the
HFSA?Is there any amount of time that
the money has to be sitting in theHFSA?
Because I know like when Ipurchased my home in 2021, we did
take money from my RRSP and themoney had to be in there for 90
days.
So I'm just curious like how that
works for the FHSA.
Yeah, so from my understanding and
everything that I read online onlike the government website and
(16:37):
everything, there is no minimum.
Cool.
Like some institutions will havelike a hold where they need to
make sure that that deposit youmade isn't.
going to rebound right to makesure you actually have the money
there but basically once themoney's in there and then it's
good to go then you can initiate awithdrawal maybe i'll speak a
little bit on that too from themortgage side of things whenever
clients are moving down paymentsaround it does get a little
(16:57):
tedious in proving where thatmoney comes from so making sure
that you talk to your brokerbefore you start moving things
around is important becauselenders follow the down payment
like a bouncy ball so if it's inthis account and and then this
account, i'll speak a little biton that too from the mortgage side
of things whenever clients aremoving down payments around it
does get a little tedious inproving where that money comes
from so making sure that you talkto your broker before you start
moving things around is importantbecause lenders follow the down
payment like a bouncy ball so ifit's in this account and and then
(17:22):
this account, and then thataccount, we need to know every
single account that it touches.
And we need to have a 90 day
statement for each of thoseaccounts.
So that's important, I think, toto note, right?
Okay, and I guess in the 90 days,is that in the sense, like, you
just need to make sure they hadaccess to that money within 90
days, like they didn't justinherit that money within like 30
days it depends on the lender andwhat their guidelines are some of
(17:44):
them is 30 but for the majority ofthem is 90 and it's for anti
-money laundering laws so we needto make sure that that money isn't
being laundered and the best wayto do that is to see it in the
account for a minimum of 90 days30 days it depends on the lender
and what their guidelines are someof them is 30 but for the majority
of them is 90 and it's for anti-money laundering laws so we need
(18:09):
to make sure that that money isn'tbeing laundered and the best way
to do that is to see it in theaccount for a minimum of 90 days
Okay.
So basically, once you start
actually house hunting, you shouldmake sure your money's in the
right spot.
Yeah.
I actually had a client who waskind of looking for a house, but
she wasn't in a rush.
And then her mom's a realtor.
And so an off -market deal cameup.
And so she just jumped on it.
And she messaged me and was like,
okay, I gotta take my money out.
And I was like, hold on, your
money's still in your TFSA.
We need to put it into your...
FHSA so you can get this taxbreak.
Like this is kind of what we'vebeen waiting for.
And we thought it was maybe almosttoo late because things were
moving so quickly.
(18:29):
But we were able to do the TFSA
withdrawal and then put that intoher FHSA.
Now, I mean, everything wentthrough, so that lender must be
okay with it.
She had the funds there to prove
that she had them right.
And because we were able to
actually do this, she's expectedto save like $6 ,000 in taxes next
year.
Whereas if we didn't put in that
effort and it was like, oh,whatever, let's just, doesn't
(18:50):
matter.
She would have lost out on those
savings.
Well, I think that's where it's
important to be working with agood accountant also, because when
it comes tax time, they're theones that are dealing with that
side of the transaction.
And so having somebody in your
corner is super important.
Tegan, I've got a question for you
in terms of investing in thosehome savings accounts.
So I'm aware that you can investmoney that's sitting in your RRSP
or your TFSA.
Those are kind of just the
accounts or like the vehicles, butyou can have investments.
within those to help thoseaccounts grow.
So I'm curious to know what yoursuggestions are and if you can
also invest money that's sittingin your FHSA.
Yes.
So kind of like what you said,
they are vehicles, right?So they're all investment accounts
(19:11):
or you can use them to invest.
So the only difference is how
they're taxed, right?So you can invest your FHSA in the
exact same stocks or funds as yourTFSA or your RSV, right?
And it'll... grow the same.
The only difference is that
taxation.
And then when you're deciding how
you want to invest it, a big partof that is that timeframe.
So it's really important to know,or at least have a general idea of
(19:31):
how long until you're expecting tobuy a house, right?
And that can come with meetingwith both of you, right?
To see, you know, with Sarah.
How much money do I need to save
for a down payment?Right.
And then we can see, you know,what's in the market.
What do I want to go for?And then you can reverse engineer
that to figure out, OK, well, howmuch do I need to save or how much
(19:53):
can I save?Right.
Like if you want to buy a house intwo years and you have to save
five hundred dollars a month, butyou don't have enough money.
Right.
It might just take you a bit
longer.
Right.
So but that time frame is reallyimportant because basically the
risk level of your portfolio,which basically is.
what percentage is stocks andmaybe what percentage is bonds,
(20:14):
right?Higher risk or lower risk?
Usually higher risk has morefluctuations, so more ups and
downs.
Bonds are lower, so less
fluctuation.
So the timeframe is really going
to tell you how much up and downyou can afford to take because
similar with like an emergencyfund, you don't really want that
attached to the stock marketbecause The last thing you want is
(20:34):
to need to pull that money outwhen the market's down, right?
You want to be able to wait for itto recover.
So if you're, let's say, buying ahouse like this year, you probably
don't want to put in the stockmarket because things are going up
and down all the time, right?But if you have a couple years,
you could potentially put it inthe stock market, but maybe not as
(20:58):
aggressive or as high risk as youwould say like your retirement
money.
money.
Interesting.
I had no clue, but I was listening
to a podcast yesterday about...
just like purchasing a home and
goals and, you know, like theinvesting side of it.
And I was like, huh, I wonder ifyou could do that.
So that's really interesting.
Are you seeing a lot of people do
that?Or do they feel like it's a little
bit too risky?I mean, I know it's a relatively
(21:19):
new account.
So I don't know.
Yeah, I mean, it really justdepends on the timeframe, really,
like the clients that I meet with,we always go through like
investment basics.
So I take them through, you know,
You're probably going to see moreups and downs with the stock
market if you invest this way.
And this is how we diversify to
reduce risk.
So I give them a good
understanding.
And so if it is a couple of years
away, they are usually very opento investing it because we set it
(21:42):
up to reflect that.
Right.
But then again, I do have a lot ofpeople that are like, oh, well,
I'm probably buying within thisyear, maybe next year.
But if something comes up thatcatches my eye, I want to be able
to jump on it.
Right.
And so if it's that close, usuallyyou can attach like a high
interest savings fund.
So let's say you just use a high
interest savings account.
Right.
You're going to earn some intereston that money while it sits there
(22:04):
and it's protected from the stockmarket, but it's not in your.
for some savings accounts.
You're not going to get that tax
rebate.
So there is a lot of options to
use your FHSA.
And instead of attaching, you
know, an investment fund to it,you attach the high interest
savings fund.
So it's very similar to a high
interest savings account where youreceive that interest rate.
That interest rate can change justlike how mortgage rates change
(22:24):
and, you know, the bond rateschange.
But that amount's not going to godown.
It'll only go up.
So that's a nice secure spot to
even get like a little bit morebang for your buck, right?
While the money's sitting there,if you put eight grand in, well,
maybe it grows by a couple hundredor something by the time that
you're ready to use it.
So yeah, it's a lot reflective of
timeframe, but.
Yeah, you can invest it if you
(22:45):
want to, if it's like a longerperiod of time.
Cool.
Yeah.
I guess getting that account setup as soon as you turn 18 is a
huge benefit, right?I guess yes and no. It's more so
depends on how long until you'reexpecting to buy a house because
you can only carry forward oneyear of unused contribution room.
Whereas with the TFSA, itaccumulates once you're 18.
If you got $6 ,000 that year, $6,000 that year, $6 ,000.
Let's say you've never used yourTFSA since you were 18 and you're
(23:05):
like 30.
Well, you've accumulated a lot.
But with the FHSA, you can onlycarry forward that $8 ,000.
And so, I mean, if you open it at18 and you plan to buy a house in
two years, then yes, open it.
But it's not going to make a huge
difference if you're not savingright away.
If you do technically startputting money in at 18, that can
have a... I don't know, funnelingeffect over the years in that
(23:26):
sense.
But it really just depends on how
much are you going to be puttingin there and how long until you
expect to buy a house.
And that will determine when you
should really open it.
It doesn't hurt to open it as soon
as possible because then it'sthere when you're ready to use it.
So the government did put out anew program.
government did put out a newprogram.
And basically, first -timehomebuyers can save the GST up to
(23:48):
$50 ,000.
which is huge.
You said you bought in 2021.
Obviously, you paid the GST, so
that's not accessible for you, butit can be a huge savings for
clients.
Yes, I'll touch on that a little
bit.
The federal government hasn't
given too much information on whatthat exactly looks like right now.
So I actually have a pretty strongpartnership with a builder here in
Calgary.
And everyone is asking about this,
you know, GST rebate, it's a hugesavings.
(24:09):
So everybody wants to know how itworks.
And we're still waiting, we'restill waiting for some
information.
But basically, until further
notice, the way that it would workis the client would still have to
qualify for the full price.
And then like basically go back to
the government and request therebate of say $30 ,000, for
example.
So it would be kind of like an
after fact, which is great.
(24:29):
Like that's a huge amount in
savings.
But like say that they can only
qualify for the $670 ,000 house.
They can't go buy that $700 ,000
house, you know, because theystill have to qualify at the other
number.
So it's going to be really
interesting.
I hope that they allow the builder
to like apply for the GST rebateon the buyer's behalf, because
then that would... allow thebuilders just take the money right
(24:50):
off the price so yeah we'll seewhat happens with it yeah i think
there's so many governmentprograms that have rolled out in
the last even let's say six monthsbut they don't have the details to
support how we access them likehouse hacking is huge so having
the ability to refinance aninsured loan and suite the
property was a really greatprogram but it hasn't really been
(25:11):
I'll i think there's so manygovernment programs that have
rolled out in the last even let'ssay six months but they don't have
the details to support how weaccess them like house hacking is
huge so having the ability torefinance an insured loan and
suite the property was a reallygreat program but it hasn't really
been accessed yet.
So that's another one that we have
to wait and see what they say.
And then I guess go from there.
(25:33):
So are there new rules coming?Cause like refinancing your house,
pulling out equity and then doingrenovations, whether it's a suite
or not.
I feel like that's been around for
a long time, but I guess, are theyimplementing like additional?
Yeah.
or So normally an insured loan
becomes uninsurable when you pullthe equity.
And what they offered is that youcan refinance up to 95%.
And so that's huge becausenormally you can only refinance up
(25:54):
to 80%, leaving 20 % equity in theproperty.
But giving clients access to thisadditional 15 % is kind of what
was beneficial.
And then on top of it, you can use
the potential rental income toqualify for that loan.
Right.
Well, that's super interesting.
I always kind of thought about howit was interesting how you can buy
a house, I mean, depending on howmuch it costs, but it's pretty
(26:16):
possible to get 5 % down inWinnipeg.
So you can buy a house with 5 %down, but if you want to refinance
and take money to renovate, youneed 20%.
So it's just interesting that theywould give you a mortgage for 5%,
but they won't give you amortgage.
5 % if you pull the equity out.
So it's interesting that they're
rolling that out now because thatdefinitely makes more sense.
The difference is that it becomesuninsurable once it is a
(26:38):
refinance.
uninsurable once it is a
refinance.
And so the kicker is that the
insurers are still going to insureit.
Previously, they wouldn't.
So now it's less risky, right?
So they will go up to 95 % becauseit's still insured.
And I think that's what makes allthe difference.
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