First home Are you a first-time home buyer looking for a way to save for your down payment? Look no further than the First Time Home Buyers tax-free savings account program! This new initiative allows Canadians to contribute up to $8,000 per year (up to a lifetime limit of $40,000) towards their first down payment within 15 years of opening their account. The best part? Contributions are tax-deductible, just like a Registered Retirement Savings Plan (RRSP), and withdrawals for the purpose of purchasing a first home are non-taxable.

So, who can open a First Home Savings Account (FHSA)? Any Canadian resident who is at least 18 years old and has not owned a qualifying home as their principal place of residence for the year the account is opened or the preceding four calendar years. You can contribute up to $8,000 in any given year, including 2023, when the program is set to launch. Unused contribution room can be carried forward, and you can even hold more than one FHSA, as long as the total contributions don’t exceed your annual and lifetime limits.

The FHSA can also be combined with the Home Buyers’ Plan, which allows you to withdraw up to $35,000 from your RRSPs to buy or build a qualifying home for yourself or a relative with a disability. Any amounts withdrawn under this plan must be recontributed to an RRSP on a non-deductible basis over a period not exceeding 15 years.

Overall, the First Time Home Buyers tax-free savings account program is a great way for Canadians to save for their first down payment while receiving tax relief. It’s a win-win situation that can help make the dream of home ownership a reality. Get started today to take advantage of the deadline to count for this years contributions.