First Home Savings Account

The Federal Homebuyer's Tax Credit (FHSA) is a new program that allows eligible homebuyers to save up to $40,000 toward their home purchase. The FHSA allows a maximum annual contribution of $8,000 over a period of five years, and these contributions are tax-deductible. Furthermore, withdrawals made from the FHSA account to purchase a home are tax-free.

It's important to note that the FHSA is not only for first-time homebuyers. People who haven't owned a home for four years or more are also eligible to participate in this program. This makes the FHSA an excellent option for people who are re-entering the housing market after being out of it for a number of years.

In addition to the FHSA, the Canadian government has also introduced the Multigenerational Home Renovation Tax Credit. This refundable tax credit will provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability to live with family members. Eligible families can claim 15% of a maximum $50,000 in home renovation and construction costs to build a secondary housing suite.

Overall, these new tax benefits are aimed at making it easier for Canadians to purchase or renovate a home. They will provide much-needed financial support to people looking to enter or re-enter the housing market, and also to those looking to build a secondary housing suite for a senior or an adult with a disability