Who has opened an FHSA, and how much are they saving? What CRA data shows
Global News
Here's how much Canadians were able to sock away in their first-home savings accounts in the first year the vehicle was available for homebuying hopefuls.
Freshly released data from the Canada Revenue Agency reveals just how much the typical saver was able to put into a first home savings account in the first year the account was on offer for Canadian home-buying hopefuls.
The FHSA, first announced in the Liberals’ 2022 federal budget, went live midway through 2023 at most financial institutions offering the savings vehicle.
The account allows holders to deposit up to $8,000 annually to a maximum of $40,000 over their lifetime. Contributions are tax-exempt on the way in and out of the account, as long as the withdrawals are put towards a qualifying home purchase. Funds can grow tax-free in the account for up to 15 years, at which point they must be withdrawn for a down payment or transferred to an RRSP.
Finance Minister Chrystia Freeland has touted the popularity of the account, with more than 750,000 Canadians having opened an FHSA as of April 16, when the Liberals tabled their latest spending plans.
The CRA tabled information in the House of Commons on Wednesday about the relative values of these accounts in response to a question from Conservative MP Dan Albas.
The agency’s response includes data on the nearly 625,000 individuals with active FHSAs as of the end of 2023. Canadians can have multiple FHSAs at different institutions as long as they remain within the annual and lifetime contribution limits for the account.
According to the CRA, the fair market value of all active FHSAs was $2.37 billion.
The average balance of an FHSA at the end of last year was $3,792, while the median value was $2,040.
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