52% of new homebuyers likely to use first-time savings account: poll

Click to play video: 'Reality checking how First Home Savings Account will benefit potential homebuyers'
Reality checking how First Home Savings Account will benefit potential homebuyers
With more than 22 million homes needed by 2030 to address Canada's housing crisis, the federal government is promoting the First Home Savings Account (FHSA) as a tool to help people who want to buy their first home. Mackenzie Gray explains how the FHSA works, and why critics are skeptical of how helpful it will be – Aug 10, 2023

A new survey suggests a little more than half of potential first-time homebuyers are interested in using a first home savings account, even though they don’t know much about it.

The BMO survey shows 52 per cent of respondents looking to buy a property are likely to use their first home savings account to save for the purchase but 69 per cent of Canadians reported they’re not knowledgeable about the features and benefits of the account.

The federal government launched the account in April to provide home buyers with another vehicle to save up for their first home as affordability erodes in the housing market.

Click to play video: 'Ask an Expert: First Home Savings Account'
Ask an Expert: First Home Savings Account

The survey questioned 1,510 Canadians between Nov. 3 and 8, with a margin of error of 2.5 per cent.

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A first home savings account combines features of a registered retirement savings plan and tax-free savings account and allows the account holder to invest in securities such as GICs, ETFs and mutual funds.

Buyers can contribute up to $8,000 per year to the account with a lifetime contribution limit of $40,000.

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