“We know home affordability is a big issue on the minds of Canadians,” said Kingsley Chak, senior vice president of retail deposits, savings, and investments at Scotiabank. “The FHSA unlocks tremendous value and flexibility for those looking to save for a down payment toward their first home.”

On the same day, TD also announced that it has begun offering the FHSA.

Two of Canada’s Big Six banks are currently offering the new First Home Savings Account (FHSA), a tax-free option that the federal government has recently launched to assist would-be home buyers.https://t.co/V7On5t9IAw

— Canadian Mortgage Professional Magazine (@CMPmagazine) April 26, 2023

FHSA demand far exceeded expectations, says Freeland

Federal finance minister Chrystia Freeland recently said that since the program’s launch earlier this year, significantly more Canadians availed of the FHSA than expected.

“What [home buyers] really were saying is this is a crisis, and this is an intergenerational crisis, and I really recognize that,” Freeland said. “I really believe that it is important for us at the federal level, the provincial level, the municipal level, to put forward all the tools we can to resolve this crisis.”

Available to first-time buyers aged 18 to 71, the tax-free FHSA is designed to help Canadians save for the down payment on their first homes through an annual deposit of $8,000, with a lifetime contribution limit of $40,000.