Accessing property has never been so difficult. The property rate in Canada is down compared to the summits recorded in 2011, according to Statistics Canada. To respond to this reality, the government has launched the tax -free savings account for the purchase of a first property (Celiapp). The program has been offered to the public since 2023.

Although it shares certain characteristics with other regimes recorded – the contributions paid are deductible from taxable income -, the Celiapp also has several important differences.

What is celiapp

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  • To open a celiapp, you have to be over 18 and under 71, and reside in Canada.

  • We consider as a buyer of a first property anyone who, during the current calendar year and the previous four calendar years, did not live in an eligible property of which her – or her spouse – was the owner.

  • The holder obtains $ 8,000 in fee of subscription each year. Although a customer can open more than one celiapp, this annual ceiling applies to all the accounts held. The life ceiling is set at $ 40,000.

  • A celiapp can remain open for a maximum duration of 15 years.

  • Revenues generated within Celiapp have no impact on available contribution rights.

  • Excess contributions are imposed at a rate of 1 % per month, calculated on the highest excess amount held in the account during the month. This penalty applies until the excess either eliminated, or by the allocation of new contribution rights, or by withdrawn from the excess amount.

  • Only the holder of the Celiapp can contribute to his own account and claim the tax deductions which result from it.

Feed a celiapp

  • Direct transfers of a registered retirement savings regime (RRSP) to a Celiapp reduce the subscription rights available to Celiapp, but do not restore unused RRSP rights. In addition, the sums transferred thus are not deductible from taxable income.

  • Direct transfers from other registered regimes are not authorized. To transfer funds from your tax -free savings account (CELI), you will first have to withdraw money and then contribute to your Celiapp.

Remove funds from a celiapp

  • A withdrawal made from a CELIAPP does not have to be included in the customer’s taxable income if it is used to buy an eligible property.

  • The customer must have in hand a written agreement aimed at the purchase or construction of an eligible housing, with a date of taking possession or completion scheduled no later than October 1 of the year following that of withdrawal.

  • The withdrawal cannot be used for a home acquired more than 30 days before withdrawal.

  • The customer must intend to occupy this home as a main residence within one year of the purchase or the end of construction work.

Other transfers from a celiapp

  • In general, direct transfers from a Celiapp to an RRSP, a registered retirement income (FERR) or another Celiapp belonging to the same holder do not result in immediate tax consequences.

Source: Canada Revenue Agency (ARC)

This article is a Complement to the magazine of the July 2025 edition of theInsurance journal.