Unlock the Door to Your First Home with a First Home Savings Account

Although the program officially launched on April 1st, the Big 6 banks will make it available later this year. Save up to $40,000 tax-free for your down payment and invest in various vehicles to grow your savings.

Get ready to make your homeownership dream come true!

Key Points:

• First-time homebuyers can save up to $40,000 tax-free for their down payment
• Investments within the account can include mutual funds, publicly traded securities, government and corporate bonds, and guaranteed investment certificates (GICs)
• Funds can be withdrawn tax-free for qualifying first-home purchases

Eligibility & Contribution Limits:

• Any Canadian resident aged 18 or older who hasn’t owned a home or lived in a home owned by their spouse or common-law partner in the past 4 calendar years
• Contribute up to $8,000 per calendar year with a lifetime limit of $40,000
• Carry forward up to $8,000 in unused contributions for future years

Qualifying First Home Purchases:

• Be a first-time homebuyer and a Canadian resident during the withdrawal and purchase
• Have a written agreement to buy or build a qualifying home in Canada before October 1 of the year following the withdrawal
• Intend to occupy the home as your principal residence within one year of purchase or construction

Here is the Canada Revenue Agency page with more information.

Other Considerations:

If you don’t use the funds for a first-home purchase, you can transfer the balance to a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) or withdraw it on a taxable basis by the end of the 15th year after opening the account or by the end of the year you turn 71.