What You Need to Know About Setting Up A First-Time Homebuyers Savings Account

Bernard Kradjian, The Toronto Broker

A First-Time Homebuyers Savings Account (HSA) is a tax-free savings account available to eligible first-time homebuyers in Ontario. The account enables first-time homebuyers to save money towards the purchase of their first home.

The account can be opened at any financial institution and there is no minimum amount required to open the account. However, the maximum amount that can be contributed to the account is $50,000.

First-time homebuyers who have an HSA are eligible for a tax credit of up to $2000. The tax credit is based on the contributions made to the account and the Closing Date of the home purchase.

In order to be eligible for a First-Time Homebuyers Savings Account, the homebuyer must:

be a Canadian Citizen, Permanent Resident, or Non-Permanent Resident

  • be at least 18 years old
  • have never owned a home before
  • intend to live in the home as their primary residence
  • have a valid social insurance number

If you are a first-time homebuyer in Ontario, opening a First-Time Homebuyers Savings Account can be a great way to save money towards your dream home. Not only will you be able to save tax-free, but you may also qualify for a tax credit on your contributions. Be sure to speak with a financial advisor or a representative from your chosen financial institution to find out more about the HSA and its benefits.

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