Montréal-As house prices have climbed, saving for a down payment is out of reach for many Canadians, particularly young people. Today, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, shared how the new tax-free First Home Savings Account is available and helping put home ownership back within reach of Canadians across the country.
The new tax-free First Home Savings Account is a registered savings account that helps Canadians become first-time home buyers by contributing up to $8,000 per year (up to a lifetime limit of $40,000) for their first down payment within 15 years. To help Canadians reach their savings goals, First Home Savings Account contributions are tax deductible on annual income tax returns, like a Registered Retirement Savings Plan (RRSP). Like a Tax‑Free Savings Account, withdrawals to purchase a first home, including any investment income on contributions, are non-taxable. Tax-free in; tax-free out.
Financial institutions have been offering the First Home Savings Account to Canadians since April 1, 2023, and it's now available at 7 financial institutions, with more set to offer it soon.
While the First Home Savings Account seeks to address housing affordability, it's also essential for the Government of Canada to help homebuilders hire the workers they need to put shovels in the ground. That's why IRCC has
- made more workers with experience in homebuilding occupations eligible for permanent residence through Express Entry
- held a first-ever trades-specific Express Entry draw on August 3, 2023, inviting 1,500 candidates with experience in trades occupations to apply for permanent residence in Canada
Through these measures, the federal government is addressing crucial gaps in the labour shortage, and bringing in the talent required to build homes faster.
