MBOttawa_stack_colourPMS.png Apply Now
Current Mortgage News
Mortgage News

Take advantage of your TFSA

The Tax Free Savings Account (TFSA) was introduced in 2009. There has been some confusion about the rules, but once you have a good understanding, these accounts are a good way to save.

Published

A recently released survey shows that only 47% of those polled have a Tax Free Savings Account (TFSA.) Out of that 47%, only half stated they have made a contribution this year. Evidence from other surveys conducted over the past few years suggests that the reason for the low level of participation stems from a lack of understanding regarding how the accounts actually work.

TFSAs were introduced in 2009 and allow savings contributions up to $5,000 per calendar year. The interest accumulated is tax-free and any unused contribution room is carried forward to the next calendar year. With the ability to invest your savings multiple ways, a TFSA is a perfect way to build a larger down payment when applying for a mortgage.

Click here to continue to Mortgage Broker Journal.