Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, announced that more than 300,000 Canadians have opened a Tax-Free First Home Savings Account since April 1, 2023, which is making it more affordable for them to save for a down payment.
The Tax-Free First Home Savings Account allows Canadians to contribute up to $8,000 per year (up to a lifetime limit of $40,000) for their first down payment. To help Canadians reach their savings goals, Tax-Free First Home Savings Account contributions are tax deductible on annual income tax returns, like a Registered Retirement Savings Plan (RRSP). And, like a Tax-Free Savings Account (TFSA), withdrawals to purchase a first home-including any investment income on contributions-are non-taxable. Tax-free in; tax-free out.
To maximize 2023 tax return deductions, Tax-Free First Home Savings Account contributions must be made by December 31, 2023. Contributions can also be carried forward to be deducted in future tax years.
To build more homes, faster, the Deputy Prime Minister and Minister of Housing also announced that $71 million has been allocated to help build and repair over 1,600 co-op homes in Quebec, British Columbia, Ontario, and New Brunswick, including through the Affordable Housing Fund. This includes:
- 1,004 homes in Quebec;
- 422 homes in British Columbia;
- 132 homes in Ontario; and,
- 102 homes in New Brunswick.
The 2023 Fall Economic Statement, introduced on November 21, advances the government's economic plan with new investments to build more homes, faster-including co-ops. This includes an additional $1 billion top-up to the Affordable Housing Fund, which will support non-profit, co-op, and public housing providers to build more than 7,000 new homes by 2028. The Fall Economic Statement also includes a $15 billion top-up to the Apartment Construction Loan Program, which will support the construction of more than 30,000 additional new homes across Canada.
