Canadians work hard to one day achieve their dream of homeownership, and we are helping them get there sooner. However, the high cost of downpayments coupled with the limited supply of new housing are a barrier to homeownership for many Canadians, especially younger generations.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that now nearly 1 million Canadians have opened a Tax-Free First Home Savings Account to save for their first downpayment.
The Tax-Free First Home Savings Account is a key tool to make homeownership more affordable by allowing Canadians to contribute up to $8,000 per year, and up to a lifetime limit of $40,000, for their first down payment.
The Tax-Free First Home Savings Account is a powerful financial tool that supports generational fairness by putting the homeownership opportunities that have been available to generations of Canadians back within reach of young Canadians today.
To maximize 2024 tax return deductions, Tax-Free First Home Savings Account contributions must be made by December 31, 2024. Contributions can also be carried forward to be deducted in future tax years.
Today's milestone is just one part of the federal government's housing plan-the most ambitious in Canadian history-to build 4 million new homes and unlock the dream homeownership for every generation. It builds on the significant reforms to mortgages announced in recent months, such as allowing 30-year amortizations for first-time home buyers and buyers of new builds, and increasing the insured mortgage cap to $1.5 million. This will lower downpayments and monthly costs for homeowners.
