Roughly half of first-time buyers likely to use first home savings account: BMO poll

Montreal, CA – 3 September 2019: BMO sign on René Lévesque Boulevard. (Photo credit: marcbruxelle/123RF.COM)

A new survey suggests a little more than half of potential first-time homebuyers are interested in using a first home savings account, even though they don’t know much about it.

The BMO survey shows 52 per cent of respondents looking to buy a property are likely to use their first home savings account to save for the purchase but 69 per cent 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 home buyers 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 per cent.

A first home savings account combines features of a registered retirement savings plan and tax-free savings account 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.

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