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

Bank Of Montreal signage is pictured in Ottawa on Monday, July 11, 2022. A BMO Financial Group survey suggests over half of potential first-time homebuyers say they're likely to use their new first home savings account but most say they don't understand the account. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO — 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.

This report by The Canadian Press was first published Dec. 7, 2023.

Companies in this story: (TSX: BMO)

The Canadian Press

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