The new federal budget unveiled yesterday by finance minister Chrystia Freeland includes more than $10-billion earmarked for housing over the next five years. Among other items, it proposes a new Tax-Free First Home Savings Account beginning in 2023.
The program would enable prospective buyers to save $8,000 per year toward a down payment, for a maximum of $40,000 per person. As with an RRSP, contributions would be tax-deductible, with no tax on withdrawals.
Meanwhile, the Multigenerational Home Renovation Tax Credit would enable homeowners to claim 15 percent of up to $50,000 of eligible costs related to adding a suite for an elderly or disabled family member.