Most Canadian banks aren’t yet offering the tax-free First Home Savings Account, but the two major banks that have made the option available say demand is high, particularly among young Canadians.
, saying “tens of thousands” of accounts have been opened since April, a large majority of them held by Canadians under the age of 45 – numbers the bank said show “phenomenal early uptake.”
“A significant number of holders are placing the maximum amount, and they tend to be on the younger side of the population,” National Bank said in an emailed statement. The account combines some features from a Registered Retirement Savings Plan and Tax-Free Savings Account. Contributions are tax deductible and earnings within the account are tax-free with the condition that they are used for a home purchase once withdrawn.
More than a quarter of account holders, at 26 per cent, have contributed all or most of the maximum annual amount of $8,000, RBC said, and more than a quarter are contributing regularly to their accounts.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Here's how Canada's new tax-free first home savings account worksAs rental costs soar to unprecedented heights, many Canadians are considering buying a home. But rising mortgage interest rates and inflation have ...
Read more »
In the news today: Feds talk new Canadians and housing, First Nations policing delaysHere is a roundup of stories from The Canadian Press designed to bring you up to speed on what you need to know today... Liberals say newcomers can help solve housing crisis ...
Read more »
In the news today: Feds talk new Canadians and housing, First Nations policing delaysHere is a roundup of stories from The Canadian Press designed to bring you up to speed on what you need to know today... Liberals say newcomers can help solve housing crisis ...
Read more »
In the news today: Feds talk new Canadians and housing, First Nations policing delaysHere is a roundup of stories from The Canadian Press designed to bring you up to speed on what you need to know today... Liberals say newcomers can help solve housing crisis ...
Read more »
In the news today: Feds talk new Canadians and housing, First Nations policing delaysHere is a roundup of stories from The Canadian Press designed to bring you up to speed on what you need to know today... Liberals say newcomers can help solve housing crisis ...
Read more »