The First Home Savings Account is a new tax-free option for first home buyers.
From April 1, 2023, as a first-home buyer in Canada you are eligible to register for a tax-free First Home Savings Account (FHSA).
The FHSA is a mix between and RRSP (registered retirement savings plan) and TFSA (tax-free savings account). Contributions to FHSA are tax-deductible and withdrawals from FHSA will not be taxable. Some of the highlights of FHSA.
Opening the FHSA
Resident of Canada, at least 18 years of age and not turning 72 or older in the year.
First-time home buyer. You and your spouse (includes common-law partner) must not have owned a home in which you lived in as your principal residence at any time during the part of the calendar year before you opened the account or at any time in the preceding four calendar years.
Contributions
You are eligible to contribute up to $40,000 in your lifetime with an annual limit is $8,000.
You will be able to carry forward your unused annual contribution limit up to a maximum of $8,000 in a given year.
For more information and details regarding withdrawals, transfers, spousal contributions, and other features, connect with us by filling up the form.