Introducing the First Home Savings Account (FHSA), a registered savings plan created by the federal government in 2022. The purpose of an FHSA is to assist you in saving for your first home, completely tax-free.
Are you eligible for an FHSA? Any Canadian who is 18 years or older and has never purchased a home before is eligible.
How does it work?
Annual contributions are limited to $8,000, up to a lifetime contribution limit of $40,000. Unused contribution room up to $8,000 can be carried forward to the following year. The account can stay open for a maximum of 15 years, or until the end of the year you turn 71.
If you’d like to compare this savings option to other available plans such as RRSP or TFSA, please do not hesitate to contact me. I would be happy to go over those figures with you!