FHSA was announced and released April 1st 2023- however many financial institutions will not be able to accept applications immediately due to compliance. We can expect to offer our clients the ability to open their FHSA with Investia in the coming months.
The new First Home Savings Account seems to combine the benefits of an RRSP with the benefits of a TFSA.
Contributions made to a FHSA are tax deductible, like an RRSP, while withdrawals made with intent to purchase your first home are TAX FREE like a TFSA.
This hybrid is a great option for individuals looking to enter the housing market (or if you have not owned a principal residence in the 4 preceding calendar years) and you are even able to use this in addition to Home Buyers Plan if you also hold an RRSP.
With the FHSA you are able to contribute $8,000 annually, with a lifetime limit of $40,000. If you use this in addition with Home Buyers Plan that is a combined maximum net amount of $75,000 you can use towards your down payment!
To read more regarding FHSA please click the button below!
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Contact us today via email - alison@cannellwealth.com
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by [Name of the advisor], who is a Financial Advisor for Cannell Wealth Management, a trade name of Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Contents copyright by the publishers. The information contained herein may not apply to all types of investors.
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