Canadian Millennials Embrace First Home Savings Plan Amid Rising Housing Costs
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A recent survey reveals that 67 percent of Canadian millennials have delayed buying a home due to rising interest rates, soaring home prices, and inflation. However, there is hope for those looking to save for a down payment through the First Home Savings Plan (FHSA), introduced by the Canadian government in April. So far, over 150,000 Canadians have enrolled in this program. The FHSA allows eligible individuals between 18 and 71 years of age to make annual tax-deductible contributions of up to $8,000, with a lifetime limit of $40,000. The funds can be withdrawn tax-free for purchasing a qualifying first home.
A unique aspect of FHSA is that it can be used even if you have owned a home before, as long as you have not lived in a home that you or your partner owned in the past four years. This flexibility makes the program an appealing option for a wide range of potential homebuyers. With the current economic climate making it challenging to save, the FHSA offers a valuable way to accumulate funds for future home ownership, and any unused funds can be transferred into an RRSP, providing additional retirement savings. The program is gaining popularity, with more than 150,000 Canadians already enrolled, making it a worthy consideration for those aspiring to own a home in the future.
Read the full article on: CP24
