CEBA Loan Repayment and First Home Savings Account deadlines

Canada Emergency Business Account (CEBA) 

Any CEBA loan holders wishing to qualify for partial loan forgiveness must pay the required balance by January 18, 2024. 

Loan holders who want to take advantage of the partial loan forgiveness but do not have the cash flow to meet the January 18, 2024, deadline may decide to refinance the loan. The application MUST be submitted to the financial institution that administered your original CEBA loan by January 18, 2024.  

Any amount owing as of January 19, 2024, will be automatically converted to a term loan with an interest of 5% per annum. The full principal repayment is due December 31, 2026.

If a loan holder has previously received notification from their financial institution indicating they are not eligible for loan forgiveness, the total amount must be repaid by December 31, 2023.  There is no repayment extension.

First Home Savings Account (FHSA)

Tax-deductible contributions for the 2023 taxation year need to be made by December 31, 2023.  

Taxpayers may want to consider opening an account before the year-end, even if they are unable to make any contributions in 2023.  Doing so earns the $8,000 annual contribution limit to carry forward to 2024.

Any parents considering gifting money to a child to help with the purchase of a home should consider using the child’s FHSA.  Even if the child is in a low tax bracket in the year of contribution, the tax deduction can be carried forward and used in a year of higher income.