A new survey suggests a little more than half of potential first-time homebuyers are interested in using a first home savings account (FHSA), even though they don’t know much about it.
The BMO survey shows 52% of respondents looking to buy a property are likely to use their FHSA to save for the purchase, but 69% of Canadians reported they’re not knowledgeable about the features and benefits of the account.
The federal government launched the account in April to provide homebuyers with another vehicle to save up for their first home as affordability erodes in the housing market.
The survey questioned 1,510 Canadians between Nov. 3 and 8, with a margin of error of 2.5%.
An FHSA combines features of an RRSP and TFSA, and allows the account holder to invest in securities such as GICs, ETFs and mutual funds.
Buyers can contribute up to $8,000 per year to the account with a lifetime contribution limit of $40,000.