Chrystia Freeland Global News Canada city Ottawa housing market CRA Canada housing Chrystia Freeland Global News Canada city Ottawa

First home savings account: Banks say they’re not ready for an April 1 launch

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A new savings vehicle for Canadians saving towards their first home purchase will technically be available starting April 1, but financial institutions who spoke to Global News say they won’t be ready to offer the account on that date and Ottawa offered no timeline for when deposits might start flowing.

The Tax-Free First Home Savings Account (FHSA), a cornerstone of the federal government’s 2022 budget, officially comes into effect at the start of next month under legislation passed earlier this year.

The account will allow Canadians to make contributions of up to $8,000 per year to a maximum of $40,000 across their lifetime to save towards the purchase of a first home.

Contributions to the account will be deductible against income, and any amounts as well as interest earned on investments within the account will also be tax-free upon withdrawal.

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