Homebuyer incentive delayed to late 2023
April 7 2023
Prospective homebuyers wanting to take advantage of the federal government’s new Tax-Free First Home Savings Account will have to wait longer despite the program’s official launch date of April 1, 2023.
All Big 6 banks confirmed they will not be in a position to offer the new account to clients but most expect to do so later in 2023, according to Canadian Mortgage Trends.
The new registered plan allows first-time homebuyers to save up to $40,000 for the down payment on their home on a tax-free basis. Similar to the Tax-Free Savings Account (TFSA), funds in the account can be placed in a variety of investment vehicles and can then be withdrawn tax-free as long as the funds are used for a qualifying first-home purchase.
The account was first announced in the federal government’s 2022 budget.
The country’s largest banks say they are still working to finalize the logistics of offering the account to clients, including obtaining the required government authorizations and awaiting tax reporting guidelines from the Canada Revenue Agency.