250K Canadians have opened a first home savings account: Freeland

Canadian banks are seeing a rapid uptake in tax-free first home savings accounts, according to Chrystia Freeland.

Some 250,000 FHSAs have been opened across Canada, the Liberal finance minister said during a press conference Tuesday. She said that’s up from just over 150,000 accounts as of Oct. 5, some 26 days ago.

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A cornerstone policy for housing affordability in the Liberals’ 2022 federal budget, Global News reported earlier this year that Canadian banks were not ready to offer the account as of the government’s stated April 1 launch date.

The FHSA launched at a few banks later that spring with more financial institutions adding the savings vehicle throughout the year. Finance Canada says the FHSA is now available at more than 20 financial institutions.

Canadians with an FHSA can contribute $8,000 per year to save towards their first home, to a maximum of $40,000. Account owners deduct contributions to the FHSA on their income taxes and pay no tax on investment earnings and withdrawals used towards a downpayment.

More to come.