This is the First Home Savings Account (FHSA) History.

Originally, the Tax-Free First Home Savings Account was proposed by the Liberal Party in their 2021 election platform (Liberal.ca):

A re-elected Liberal government will:

Introduce a tax-free First Home Savings Account will allow Canadians under 40 to save up to $40,000 towards their first home, and to withdraw it tax-free to put towards their first home purchase, with no requirement to repay it.

Combining the features of both an RRSP and a TFSA, this plan would allow young Canadians to set aside 100% of every dollar they earn up to $40,000 and shorten the time it takes to afford a down payment.

The Liberal government made good on their promise to introduce a Tax-Free First Home Savings Account in the 2022 Budget on April 7, 2022.

From https://budget.gc.ca/2022/ here is what the government has said ab the FHSA:

A Tax-Free First Home Savings Account

As home prices climb, so too does the cost of a down payment. This represents a major barrier for many looking to own a home—especially young people. To help Canadians save for their first home:

Budget 2022 proposes to introduce the Tax-Free First Home Savings Account that would give prospective first-time home buyers the ability to save up to $40,000. Like an RRSP, contributions would be tax-deductible, and withdrawals to purchase a first home—including investment income— would be non-taxable, like a TFSA. Tax-free in, tax-free out.

The government intends to work with financial institutions to ensure that a Tax- Free First Home Savings Account could be opened and contributed to in 2023.

It is estimated that the Tax-Free First Home Savings Account would provide $725 million in support over five years.

These are the FAQs about FHSA history.

Disclaimer: The information on this website is for informational purposes only.  Please get professional advice before opening any account or making any transactions.