Buy your First Home in Canada Tax-FREE!

Buy your First Home in Canada Tax-FREE!

According to the Canadian Real Estate Association (CREA), they are expecting a decrease in the average price of buying a home in Canada. What effects will this have? It will help any and all Canadians, including newcomers to buy a home in Canada easily. A newly launched plan by the Government of Canada will further make the process of buying property easier! You can have the chance to buy your first home in Canada without paying taxes! We recommend that you go right ahead and read this news to know further!

Why you should buy property in Canada

The government of Canada will be encouraging you to buy a home in the country whether you are a newcomer or a permanent resident. The Canadian Government has launched a new plan that will allow newcomers to save up money for their first home in Canada. First Home Savings Account (FHSA) will help you in saving up money. Now it will make the process of buying a home easier as you would be buying a home tax-free. But keep in mind, the tax-free condition applies to a particular limit. 

This plan started from 1st April, 2023. Using this plan, financial institutions in Canada would be able to allow their users to open a certain kind of savings account where the users would be able to save up for their first home. Permanent residents, Canadian citizens, and newcomers wishing to open an account first need to be eligible.

Eligibility Requirements of FSHA

Let’s see what are the eligibility requirements that you would need to qualify so you could also open a savings account where you would be able to save up for your first home! First of all, you have got to be a Canadian permanent resident. Second, your age needs to be more than 17 years. Third, the account needs to be for your first home purchase. 

Thinking about how you can open a First Home Savings Account? It can be done through a bank, a credit union, or an insurance company. No matter from where you are opening an account, make sure you know which type of FHSA account you want to open so you don’t end up opening a wrong account. 

Through the FHSA, the government of Canada is hoping to promote the tradition of home buying to newcomers to Canada too. This plan is making the process of buying a home affordable. The first time home buyers would be able to collect $40,000 in tax-free savings. Thus, this will at least make the down payment easy for Canadians. 

Niyati Chaurasia

Niyati Chaurasia

Niyati’s specialty lies in Canadian immigration matters along with crafting helpful, user-oriented content.

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