First Home Savings Account

A new way to save for your first home  

The Tax-Free First Home Savings Account (FHSA) helps Canadians afford their first home by combining the benefits of the Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Contributions of up to $8,000 a year are tax-deductible. Meanwhile withdrawals towards your first home purchase would be non-taxable like a TFSA.

Why should you invest in an FHSA?

  • Save up to $40,000 towards your first home. That would cover the down-payment of a high-ratio mortgage on most homes.
  • Get tax benefits now and later. You won't pay taxes on your investment earnings and it can help lower your annual tax bill.
  • Your contribution room carries forward. So, you won't lose out as your income grows and you can contribute for up to 15 years tax-free.
  • You can combine it with your partner's FHSA. If you both open FHSA accounts, you can both withdraw funds and increase your purchasing power.

How can I get an FHSA?

Here's how you can take advantage of the FHSA:
  • Be a Canadian resident, 18 years or older, buying your first home. You are considered a first-time home buyer if you or your spouse/common-law partner haven't owned any home the year you open your FHSA or four years prior.
  • Have a plan. Like RRSPs and TFSAs, FHSAs will allow you to hold your investments in a variety of investment vehicles (think Term Deposits, mutual funds*, savings accounts, etc.), knowing your risk tolerance and investment goals now will put you in a good position when this account becomes available. Our advisors can help you with this.

Are you thinking about buying your first home? Stay tuned for more details!

*Mutual funds and related financial planning services are offered through Credential Asset Management Inc. 
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