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* Today on Ask MoneyTalk, we answer a question we're hearing around saving to buy a first home. Nicole Ewing, director, Tax and Estate Planning with TD Wealth, joins me now. And here it is. "I want to buy my first home in the next few years. What are some ways to effectively save for it"? Nicole.

* Well, firstly, financial literacy is really important here. This is a big life step, and we need to understand, really, what it means to you from a savings and a spending perspective to be purchasing a home. And we want to be thinking not only about the purchase price but also about closing costs, property tax, any renovations that you might want to be doing immediately upon purchasing, so having a full sense of what all of the costs that are going to be associated with home ownership and what it means to be carrying a mortgage and making that monthly payment.

* We can then shift our thinking to how to save effectively and think about using perhaps the first-home savings account. So a first-home savings account allows you to save for a down payment. It allows you to have tax-free growth on your qualifying investments. And it allows you to benefit from claiming a tax deduction on your eligible contributions as well.

* Now, it is restricted to those as defined in the Income Tax Act. It's only available if you are between the ages of 18 and 71 years old, are a Canadian resident, and are defined as a first-time home buyer for the purposes of this legislation. But if you are eligible for that, you can also combine other registered savings plans and get the benefits of those, as well. So for example, you might want to combine the Home Buyers' Plan, which allows you to borrow funds from your RRSP for use towards a down payment on a home. Now, unlike an FHSA, you do need to repay those borrowed funds within 15 years but still a very effective strategy.

* And then don't forget, as well, about your tax-free savings account, which can be used. Again, we have tax-free growth. And it can be pulled out, and you have, essentially, tax-free growth on your qualifying investments. And that can be used and combined with your RRSP, Home Buyers' Plan, and your FHSA to have a combined strategy on how you're going to be paying for your new home.

* Now, for many potential first-time home buyers saving up for a first home, we often hear the same question. Is there a right time to buy a property?

* Well, we don't want to overemphasize trying to time the market here. If we're waiting for the perfect property at the perfect time, you might actually miss out on being able to purchase your home.

* And finally, who can people speak to to help them save for that first home?

* Right. So I would suggest speaking with your TD personal banker. They will be able to help you identify what you need in order to make that purchase but also how to access those first-home savings account, your tax-free savings account, and your RRSP Home Buyers' Plan. They will be able to help you determine how to meet your goals and get into the market.

* Nicole, thank you.

* Oh, my pleasure.

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