Helping your kids buy their first home: Smart strategies for today’s market + MORE Mar 5th

A friend at the gym was asking me if his crypto winnings from investments in Europe were taxable in Canada. It was a large once in a lifetime amount and was not his main source of income. He just tried for a few months and opt out afterwards. Lucky person.

This made me curious because what he did was very speculative, if not gambling, which is tax-free.

—Michel

Lottery or gambling winnings are generally tax-free in Canada. I think given the fact your gym buddy referred to winnings from “investments,” Michel, it was likely more of an investment gamble that just happened to pay off. 

Gambling activities can be taxable in some instances. According to the Canada Revenue Agency (CRA): 

“This will be the case if the gambling activities constitute a source of income (that is, carrying on the business of gambling). Determining the commerciality of gambling can be challenging. Games of pure chance, like lotteries, lack the badges of trade to which the traditional tests of business activity can be applied…

With housing prices close to record highs, many young adults worry that homeownership is no longer a realistic goal. But with smart planning, education, and creative strategies, buying that first home is still possible. As parents (or grandparents), we can empower our kids by teaching them strong financial habits and helping them leverage programs designed specifically for first-time buyers. 

Below are practical ways to support your children on their journey to homeownership—without jeopardizing your own financial security.

1. Teach them to build the foundation themselves

The best gift you can give your kids is financial knowledge. Supporting your kids to accomplish their goals builds their sense of independence and strengthens their confidence. Encourage them to:

Save early and consistently: Even modest savings add up, especially when started early. Help them set up:

Automatic transfers into a high-interest savings account

A budget that prioritizes saving for a down payment

Clear milestones to track their progress

Maximize first-time homebuyer programs: Canada offers several generous incentives that many young adults overlook:

First home savings accounts (FHSAs) allow contributions up to $8,000 per year (to a lifetime max of $40,000), with tax deductions on contributions and tax-free withdrawals for a first home purchase…