iAtoday

Rising real estate prices, fluctuating interest rates and the current geopolitical and economic context are not reassuring for people looking to buy their own home, especially Millennials and Generation Z.

A study from Royal LePage¹ reveals that although 74% of Millennials and Generation Z are planning to buy a property, almost half of them feel that this dream will be a challenging one to achieve.

 

The group FHSA can help ensure the dream doesn’t turn into a mirage

According to Statistics Canada, Millennials and Generation Z make up a large proportion of the workforce². The group FHSA allows plan sponsors to offer a savings solution that can meet the diverse needs of their members. It allows them to save and maximize their downpayment for purchasing a home, helping them achieve their dream.

This distinctive product can be integrated into an overall compensation and benefits strategy as a clear demonstration of an organization’s commitment to the financial wellbeing of its employees.

Key FHSA details:

• Eligible individuals can contribute up to $8,000 per year, for a lifetime maximum of $40,000, toward the purchase of a qualifying home.
• Contributions are tax deductible, and investment income and withdrawals used to purchase a qualifying home are tax free.
• Withdrawals do not have to be repaid, unlike withdrawals made under the Home Buyers’ Plan (HBP).
• The FHSA combines the advantages of the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA).

Watch the group FHSA promotional video to see how it can have a positive effect on an individual’s homeownership journey.

 

The group FHSA webpage: a reference for you and your clients

To find out more about the plan and its benefits, visit the group FHSA webpage. 

You can also contact your Account Executive to see how the group FHSA can benefit your clients.

 

We’re invested in you by offering your clients innovative solutions focused on total wellbeing that meet their constantly evolving needs. We combine our expertise with yours to create a simplified, personal client experience that puts listening, trust and technology at the heart of everything we do.

 

¹ Gen Zs and young millennials still believe in home ownership, and they’re willing to make sacrifices to achieve it

² A generational portrait of Canada’s aging population from the 2021 Census