TORONTO — Deputy Prime Minister Chrystia Freeland says the uptake of a new savings account for first-time homebuyers is exceeding expectations.

Speaking after meeting with constituents in Toronto who want to buy a home, Freeland said the First Home Savings Account won’t solve housing affordability but is a tool to help people get into the market.

The tax-free savings account, which launched in April with a $8,000 per year and total contribution limit of $40,000, is currently available at seven financial institutions but most of the Big Six banks have yet to launch their offerings.

Critics have said the savings account will help further push up demand and home prices while doing little to improve affordability.

Freeland says she recognizes there is a housing crisis, and it’s important that all levels of government use all the tools they can to resolve it.

She says that she and the Prime Minister are “laser focused” on getting more homes built to help address the problem. 

This report by The Canadian Press was first published Aug. 10, 2023.

The Canadian Press