Canadians are actively saving up to buy homes
A special government program benefited 250,000 people.
Canadian Finance Minister Chrystia Freeland announced that the number of Canadians who have opened a tax-free savings account to buy their first home is growing rapidly. On Oct. 5, the number of Canadians taking advantage of the special program was just over 150,000, and the number has now reached 250,000.
The FHSA (Tax-Free First Home Savings Account) program was launched in the spring of 2023. Finance Canada reports that the FHSA is now available at more than 20 financial institutions.
Under this program, Canadians can contribute up to CA$ 8,000 per year to save for their first home, up to a maximum of CA$ 40,000. Account holders deduct contributions to the FHSA from their income taxes and pay no tax on investment income or withdrawals used as a down payment. We wrote more about this program here.
Due to high inflation and housing crisis, many Canadians have managed to give up the idea of buying a home. The FHSA is one of the federal government's measures to support residents in their desire to purchase real estate.
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