Federal Budget 2022: The Tax-free First Home Savings Account

In the 2022 Federal budget, the Canadian Government has proposed a Tax-Free First Home Savings Account ("FHSA") to assist first-time home buyers in buying a home.

In order to qualify, you have to be a resident of Canada over the age of 18, and cannot have owned a home in the current year or the previous four calendar years. Under the proposed FHSA program you can contribute $8,000.00 per year up to a maximum of $40,000.00. Contributions are tax deductible, and withdrawals, including any accumulated interest or investment income, are tax free.

The Government is still working out the details but the FHSA program is expected to come into effect in early 2023.

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