First Home Savings Account
Made available by the Federal Government in 2023. A Tax-Free First Home Savings Account (FHSA) is a registered plan product meant to help first-time home buyers save for a home (up to certain limits). This product is now available as of April 1, 2023.
The FHSA is not meant to replace an RRSP or a TSFA. This should be seen as a complimentary product to help you save for your first home.
Who qualifies?
- You must be at least 18 years old (or age of majority).
- You must be a resident of Canada.
- Must not have lived in a home they owned you have owned at any time during the year the FHSA is opened or during the four preceding calendar years.
Key features:
- Individuals can contribute to a maximum of $8,000 per year.
- FHSA Contributions are tax-free up to $40,000.
- Income earned is also tax-free.
- Contributions to a FHSA reduce taxable income.
- Possibility to participate in the HPB and FHSA to purchase a qualifying home.
- A tax-free transfer of funds from RRSP to a FHSA is permitted, subject to limits.
