As part of the Government’s housing plan one of the proposed measures in the 2022 federal budget was to allow Canadians to have the opportunity to start a new registered plan that can help you save for your first home tax-free. In Spring 2023 banks will roll out this savings account which is tax-free in and tax-free out.
This new savings account will give first time home buyers the ability to save for a downpayment on their first home tax free. The details are as follows:
- Save up to $40,000 tax free for you first home
- Annual tax-deductible contribution limit is $8,000
- Contribute tax-free for up to 15 years
- Carry forward any unused contribution room from prior years as long as you have the account open
- Potentially reduce your tax bill
- Pay no taxes on any investment earnings
Starting April 1st, 2023 the account is available at Canadian banks.
To get started on the home buying process click here: https://doorbell.ca/services/