Why December 12th Could Be a Smarter Closing Date for First-Time Buyers

Meet Sarah and Mike.

They’re first-time home buyers who are hoping to buy a home before the end of the year.

They’ve been talking to me early — before they’ve even found the house — and we’re looking at their mortgage strategy, down payment and FHSAs.

Here’s something interesting we discover.

120 days from today is December 12th.

So let’s say Sarah and Mike find the right home and have a choice between closing on December 12th.

But those days could matter.

Sarah and Mike both have FHSAs, and they have enough money outside of those accounts to cover their down payment and closing costs.

They decide to close on December 12, 2026.

Why?

Because a qualifying FHSA withdrawal can be made up to 30 days after buying your home.

That takes Sarah and Mike into January 2027.

On January 1st, they each receive another $8,000 of FHSA contribution room, assuming they’re eligible for the full amount.

On January 2nd, Sarah contributes $8,000 to her FHSA.

Mike does the same.

Then, while they’re still within the qualifying withdrawal window, they withdraw the money from their FHSAs tax-free.

They’ve now contributed an additional $16,000 combined to their FHSAs and may be able to claim those contributions as deductions on their 2027 income tax returns.

Let’s say they’re each in a 40% marginal tax bracket.

That $8,000 deduction could mean approximately $3,200 in tax savings each.

That’s potentially $6,400 back in their pockets as a couple.

And here’s the part I find so interesting:

December 12th is 120 days from today which means I can do a 120 day rate hold for ya right now :)

For anyone starting their home search now, a December closing isn’t that far away.

This strategy won’t work for everyone. You need to have enough funds outside of your FHSA to close on the home, and your contribution room and actual tax savings will depend on your individual situation.

But this is why I always say your mortgage strategy should start before you find the house.

Sometimes a few days — and knowing the right questions to ask — can make a pretty big difference.

****Sarah and Mike are fictional names used for this example. Speak with your accountant or tax professional regarding your individual tax situation.

Ready to chat about your goals?Visit www.emilycallme.com

Emily Miszk

Mortgage Broker

BRX Mortgage

FSRA #13463