TORONTO – A recent BMO survey has highlighted a significant gap in awareness among prospective first-time homebuyers regarding the benefits of the Federal Government’s First Home Savings Account (FHSA). Despite the housing market’s affordability challenges, many potential buyers seem to be missing out on the advantages offered by the FHSA.
The poll, conducted between November 3 and November 8, found that while over half (52%) of those looking to purchase their first home might consider using the FHSA, a striking 69% admitted to not fully understanding how it could benefit them. The FHSA program was introduced in April as a measure to assist buyers who are grappling with the high costs of entering the housing market. It permits individuals to make annual contributions up to $8,000 and caps the total contributions at $40,000. These funds can be invested in various options such as Guaranteed Investment Certificates (GICs), Exchange-Traded Funds (ETFs), and mutual funds.
The program is designed not only to help Canadians save for their first home but also to provide tax advantages that can enhance their purchasing power.
The BMO’s findings point to a need for increased education and information dissemination regarding the FHSA to ensure eligible Canadians can fully leverage this financial tool.
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