The price for a home continues to rise, which means saving for a down payment has become increasingly out of reach for many Canadians, particularly young people. To help with that, the federal government has announced a new tax-free First Home Savings account.

Immigration Minister Marc Miller says by opening an account, Canadians can save up to $8,000 tax-free each year up to $40,000 in total. He assures that the savings are tax-free going in and coming out when it’s time to buy the home over the next 15 years. Miller explains that it’s like an RRSP going in and a TFSA coming out – tax free both ways.

The catch is there aren’t enough skilled workers to build the homes. Miller says, “With provinces needing workers to meet housing demands and the home building sector facing immense challenges in acquiring talent, it is crucial for immigration to be factored into the overall approach as newcomers are an undeniable part of the solution.”