The government’s new tax-free First Home Savings Account is now available and will help put homeownership back within reach for Canadians across the country.

“Our government believes that everyone should have an affordable place to call home, and we are focused on building more homes and making housing more affordable across the country. For too many Canadians, saving for that first down payment seems impossible and out of reach. That is why we promised and are delivering on the new tax-free First Home Savings Account—a key part of our plan to put homeownership back within reach of Canadians and to help Canadians save for their first home.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“For too many Canadians the dream of owning their first home is slipping further out of reach. That’s why our government is introducing the First Home Savings Account, a tax-free account for aspiring homeowners to save for the home of their dreams. This initiative is a testament to our government's commitment to help families find and afford a safe place to call home.”

- The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

“As we emerge from the global inflation crisis, Canadians are seeing the signs of economic recovery and are saving to buy their dream home through the new First Home Savings Account. Tens of thousands of young Canadians are already taking advantage of this new tax-free way to put aside money to build their future. This game-changing way to invest will allow more young Canadians to become homeowners, while leaving more money in their pockets.”

- The Honourable Marci Ien, Minister for Women and Gender Equality and Youth

“Canadians can now reach their goal of home ownership quicker through the tax-free First Home Savings Account. By opening up an account, Canadians can save up to $8,000 tax-free each year and make their money go further. In combining measures that help put homeownership within reach, like the First Home Savings Account, with a strategic and economic immigration approach, the federal government is making housing more affordable and bringing in the skilled workers required to build more homes. With provinces needing workers to meet housing demands and the home building sector facing immense challenges in acquiring talent, it is crucial for immigration to be factored into the overall approach as newcomers are an undeniable part of the solution.”

- The Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship

• The new tax-free First Home Savings Account is a registered savings account that helps Canadians become first-time home buyers by contributing up to $8,000 per year until they reach the $40,000 contribution limit (within 15 years of opening their account) for their first down payment, and delivers tax relief when they file their taxes to help them meet their contribution goals.

  • Any Canadian resident at least 18 years of age, and not more than 71 years of age on December 31 of the year, can open a First Home Savings Account to save for their first home.
  • Unused contribution room up to the $8,000 annual maximum and unclaimed contributions can be carried forward.

• Financial institutions have been able to offer the First Home Savings Account to Canadians since April 1, 2023. 

• The First Home Savings Account can be combined with the Home Buyers’ Plan, which allows Canadians to withdraw up to $35,000 from their RRSPs to buy or build a qualifying home for themselves or for a relative with a disability. Amounts withdrawn under the Home Buyers’ Plan must be recontributed to an RRSP on a non-deductible basis over a period not exceeding 15 years. 

• The new First Home Savings Account to help Canadians save for their down payment builds on the federal government’s work to accelerate housing construction and make homes more affordable for Canadians. This plan includes:

  • A two-year ban on non-resident, non-Canadians purchasing residential property to help curb speculation and ensure that houses are used as homes for Canadians to live in, rather than as financial assets for foreign investors;
  • A one per cent annual underused housing tax on the value of non-resident, non-Canadian owned residential property that is vacant or underused;
  • Making sure that profits from flipping properties held for less than 12 months are taxed fully and fairly;
  • Doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers to offset expensive closing costs involved in buying a first home;
  • A new, refundable Multigenerational Home Renovation Tax Credit, to provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability, starting this year;
  • Applying the Goods and Services Tax/Harmonized Sales Tax to all assignment sales of newly constructed or substantially renovated residential housing, to help address speculative trading in the housing market;
  • Launching the new $4 billion Housing Accelerator Fund to remove local zoning barriers and incentivize housing construction, with the goal of creating at least 100,000 net new homes across Canada;
  • Launching a $200 million stream under the Affordable Housing Innovation Fund to develop and scale up rent-to-own projects;
  • Launching a third round of the Rapid Housing Initiative, which is providing $1.5 billion to create 4,500 new affordable housing units for Canadians in severe housing need, with 25 per cent of investments going to housing projects targeted towards women;
  • Delivering over $500 million towards the government’s goal of ending chronic homelessness, through Reaching Home, Canada’s Homelessness Strategy; and,
  • Delivering a top-up to the Canada Housing Benefit in December 2022, which provided low-income renters with a $500 payment to help with the cost of housing.

Related products

• Budget 2023

Associated links

• Financial Consumer Agency of Canada: Mortgage Qualifier Tool
• National Housing Strategy: First-Time Home Buyer Incentive

Media may contact:

Katherine Cuplinskas
Press Secretary and Senior Communications Advisor
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
financepublic-financepublique@fin.gc.ca

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