TORONTO – CIBC has become the latest major Canadian bank to offer the First Home Savings Account (FHSA), a program designed to help individuals save for the purchase of their first home. The FHSA initiative, launched by the Canadian government to address housing affordability, combines features of Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) to help homeowners potential to accumulate their down payment.
The FHSA market has attracted considerable interest since its inception, with National Bank and RBC leading the way in April when they first offered FHSAs. Their early adoption demonstrates confidence in the program’s ability to alleviate some of the financial difficulties faced by first home buyers amid soaring property prices.
Throughout August, other financial institutions such as Scotiabank, TD Bank, Equitable Bank and Wealthsimple also began offering FHSAs. RBC reported a substantial increase in account openings, particularly among customers under the age of 45. The National Bank has witnessed surprisingly high demand from 30-year-olds. Wealthsimple began the summer with a sizable waitlist for the new account type, highlighting strong interest from potential owners.
Earlier this month, BMO announced its own FHSA offering, emphasizing its commitment to making home buying more accessible. CIBC’s announcement follows suit, complementing the availability of this savings instrument from Canada’s leading banking institutions. The collective efforts of these banks reflect a broader strategy to help Canadians overcome financial barriers to entering the real estate market.
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