CANADA.... BUDGET 2022. TAX FREE SAVINGS ACCOUNT COMING FOR FIRST-TIME HOME BUYER

By Chandrayee Roy Choudhury, Canada

The 2022 budget includes plans to create a new Tax-Free First Home Savings Account (TFFHSA) to help Canadians struggling to get into the housing market save for the cost of a down payment.

Real estate hopefuls would be able to save $8,000 per year to a maximum of $40,000 per person towards the purchase of a first home. If buying as part of a household, each individual putting money towards the purchase of a home can save in their own TFFHSA.
Like existing tax-free savings accounts, withdrawals from a TFFHSA would be non-taxable, including any investment income generated within the account.

Contributions are also tax-deductible, like a registered retirement savings plan.