First Home Savings account (FHSA)

Embarking on the journey to buy your first home comes with its set of challenges in today's real estate landscape. With housing prices on the rise, dealing with inflation, and the impact of increasing interest rates, it can feel like breaking into the market is more daunting than ever. Thankfully, there's a silver lining for aspiring first-time homebuyers – the FHSA (First Home Savings Account).

Think of the FHSA as your personalized savings ally, introduced by the federal government to make your dream of owning a home more achievable. It's like having a dedicated account that lets you set aside up to $40,000 over your lifetime, specifically earmarked to help you make that exciting leap into homeownership.

In a world where the road to owning your first home seems a bit bumpy, the FHSA is there to provide a smoother path, offering financial freedom and a concrete plan to turn your homeownership dream into reality.

Do i qualify for the FHSA?

• Be a Canadian Resident

• Be at least 18 years of age

• Be a first-time homebuyer

How much money can i put into an FHSA?

You can contribute or transfer from your RRSP, up to $8,000 per year, up to a lifetime maximum of $40,000

What are the advantages of an FHSA?

• Get tax deduction every year when you contribute

• Withdraw your money tax-free when you use it to buy your first home

• grow your investment tax-free

Can I use both the FHSA and the RRSP Home Buyer’s Plan?

Yes, you can use both RRSP and FHSA. RRSP HBP allows you to withdraw up to $35,000 tax-free from your RRSP but it must be paid back within 15 years.