Originally Posted by
killramos
Devils advocate take
If people have the liquidity to contribute to this, what benefit does this actually provide versus just using your TFSA contribution room to save and withdrawing to buy a house?
Is the problem really that people don’t have enough tax sheltered account space to buy a house? Or that they are so taxed into oblivion so much that they couldn’t possible save up a down payment in the first place.
Once again, more nonsense complexity and administration to mask the real problem.
If I'm saving for a house I now have $14K per year in contribution room in tax free accounts. I don't think it's the taxes on the gains of the second $8K that is the make or break of anyone buying a home but man it sure is good vote-grabbing isn't it? On the other hand, why should someone get $8K per year of tax free contribution / investing that I don't get just because I bought my house already? The simple solution here was just to bump the TFSA limit to $10K - $14K per year so it was fair to everyone.
"Masked Bandit is a gateway drug for frugal spending." - Unknown303