Cautious optimism for federal plan to let rent count toward credit scores + MORE Apr 1st

Canadians can now boost their savings for a down payment on a home with a new type of registered account—the first home savings account (FHSA). The account, also referred to as the tax-free first home savings account, creates up to $40,000 in tax-free savings room for first-time home buyers. To date, more than 300,000 Canadians have opened an FHSA. In this article, we’ll answer common questions about the account and help you find the best one for your needs.

Frequently asked questions about FHSAs

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“text”: “On April 1, 2023, Questrade became the first company to launch an FHSA in Canada. Since then, more than 20 other financial institutions, including all of Canada’s Big Six banks, have launched the new account…

The federal government’s commitment to have rent payments counted toward credit scores is being welcomed by companies that already offer the service, while renter advocates have raised concerns. 

The plan to make the practice more widespread is encouraging, said Andrew Graham, chief executive of Borrowell.

“We’ve been saying for a couple of years now, how important it is for consumers to be able to report rental payments to build up their credit history, so I was pleased to see the government taking some action.”

Prime Minister Justin Trudeau said Wednesday that there’s something fundamentally unfair about paying $2,000 a month for rent, while those paying the same amount toward a mortgage earn equity in their home and build their credit score.

He said the government wants landlords, banks and credit bureaus to make sure rental history is taken into account on credit scores, giving young first-time buyers a better chance at getting a mortgage, with a lower interest rate…