Budget 2022: Tax-free savings account coming for first-time homebuyers

housing over the next five years in its 2022 federal budget, looking to make homes more affordable by expanding supply and helping young Canadians save for their first home.

Budget 2022: 4 things that will affect your pocketbook Ottawa’s spending document also includes plans to double the pace of homebuilding in Canada in the decade ahead, support those already struggling with housing and limit profiteering in the sector.Here’s what the government is proposing to try to make housing more affordable.The 2022 budget includes plans to create a new Tax-Free First Home Savings Account (TFFHSA) to help Canadians struggling to get into the housing market save for the cost of a down payment.Real estate hopefuls would be able to save $8,000 per year to a maximum of $40,000 per person towards the purchase of a first home.

If buying as part of a household, each individual putting money towards the purchase of a home can save in their own TFFHSA.

Some Canadians struggle to enter housing market as costs rise — ‘Nothing we can do’ Like existing tax-free savings accounts, withdrawals from a TFFHSA would be non-taxable, including any investment income generated within the account.Contributions are also tax-deductible, like a registered retirement savings plan.“Tax-free in, tax-free out,” the budget document says.Sahir Khan, executive vice-president at the University of Ottawa’s Institute of Fiscal Studies and Democracy, says the TFFHSA looks to be a “pretty generous measure” in the 2022 budget.“Getting that down payment is probably the most daunting issue for young people trying to enter the housing market,” he tells Global News.“In terms of removing a key barrier to access to the ownership market, this looks to be a very.