Immigration Minister says tax-free Home Savings Accounts will help newcomers in Canada to buy homes faster.

On august 11th, 2023, Minister of Immigration, Refugees and Citizenship of Canada, Marc Miller, shared that the new tax-free First Home Savings Account is available and helping in making home affordable for Canadians across the country. Since April, this year, financial institutions in Canada have been offering the ‘First Home Savings Account’ to Canadians, and it’s now available at 7 financial institutions, with more institutions to offer it soon.

The new tax-free First Home Savings Account is a registered savings account, that helps first-time home buying Canadians by contributing up to of $8,000 per year and up to a lifetime limit of $40,000 for their first down payment within 15 years. These contributions are tax deductible on annual income tax returns. Like a Tax-Free Savings Account, withdrawals with the aim of purchasing a first home, including any investment income on contributions, are non-taxable. “Tax-free in; tax-free out.”

“Canadians can now reach their goal of home ownership quicker through the tax-free First Home Savings Account. The federal government is making housing more affordable and bringing in the skilled workers required to build more homes. With provinces needing workers to meet housing demands and the home building sector facing immense challenges in acquiring talent, it is crucial for immigration to be factored into the overall approach as newcomers are an undeniable part of the solution.” says Marc Miller.

Source: Canada.ca