Canadians will find it easier to buy a home
The Minister of Immigration, Refugees and Citizenship has outlined how the down payment could become more affordable.
Housing prices in Canada are on the rise, making it harder for many Canadians to save for a down payment on a home. This is especially true for young people and those who have recently arrived in the country. The country's leaders realize this, and are trying to remedy the situation. This week, for example, new Minister of Immigration, Refugees and Citizenship Marc Miller outlined how the new tax-free First Home Savings Account, which became available this year, can help Canadians across the country become homeowners.
The tax-free First Home Savings Account helps Canadian residents become first-time homebuyers by contributing up to CAD 8,000 (up to a lifetime limit of CAD 40,000) per year toward a down payment within 15 years. To help Canadians reach their financial goals, contributions to a First Home Savings Account, like the RRSP, are tax-free. As with the Tax-Free Savings Account, withdrawals for the purchase of a first home, including investment earnings on contributions, are tax-free. That is, both deposits and withdrawals from the First Home Savings Account are tax-free.
Financial institutions are offering Canadians the First Home Savings Account starting April 1 of this year. It is currently available at 7 financial institutions and will soon be available at several more.
And while the First Home Savings Account aims to make housing more affordable for Canadians, the Government of Canada also recognizes the need to help companies building that very same housing to hire workers. Especially since the country's housing situation is far from ideal. Therefore, IRCC last November increased the number of Express Entry slots for those with construction experience, and on August 3 held the first-ever draw in the Express Entry system for candidates with working-class backgrounds, inviting 1,500 applicants.
In this way, the government is solving problems by trying to both fix the housing situation and making buying real estate more affordable for Canadians.
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