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First Home Savings Account (FHSA) - NEW!!

This new account is officially available and has many various benefits for Canadians looking to purchase their first home.

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What is the FHSA?

First Home Savings Account was introduced to assist individuals in purchasing their first home. Yearly contribution limit is at $8,000 with a lifetime limit of $40,000. This account can be held by any Canadian resident that is 18-71 years old who has not owned a property in the previous 4 calendar years. 

Key Benefits of FHSA

  • Contributions are tax deductible like an RRSP

  • Eligible home withdrawals are fully tax free (similar to TFSA)

  • FHSA can be used in combination with the RRSP First Home Buyers Plan

  • Any money not used for the purchase of a home can be rolled into an RRSP without affecting contribution room

FAQs

  • Once opened, lasts 15 years max

  • Must plan to occupy the home within one year as their principal residence

  • Can be transferred to another FHSA, RRSP or RRIF tax-free and not affect contribution room

  • Only FHSA holder can claim deductions for contributions (not spouses)

  • Carry forward rooms differs from TFSA or RRSPs- you can essentially “catch up” up to $8,000 on top of your current year’s $8,000 contribution for a total of up to $16,000

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