Save More Faster
Reach new savings heights with an account that's tax free accrueing more interest than a regular savings account.
Make Your Contributions Your Way
Accounts have a generous lifetime contribution limit of $40,000 paving the way for a larger tax free down payment.
More Contribution Space
Annual contributions can be made up to $8,000 a year allowing your to save more.
Time is On Your Side
Your First Home Savings Account can stay open for a maximum of 15 years or until end of year when you turn 71.
What is a First Home Savings Account?
An FHSA seamlessly integrates key elements from both RRSPs and Tax-Free Savings Accounts. Contributions to an FHSA typically offer the advantage of being tax-deductible, providing a valuable avenue for individuals to reduce their taxable income. Furthermore, when a withdrawal meeting qualifying criteria occurs, the withdrawn amount is exempt from taxation. This qualify for an FHSA you must meet the following criteria you must be:
- A Canadian resident
- 18 years of age or older
- A first-time home buyer
Frequently Asked Questions
I've already been saving for a home with an RRSP. Can I transfer those funds to an FSHA?
Yes you can transfer your RRSP to your FSHA tax fee. These transfers are subject to FSHA annual and lifetime contribution limits. Such transfers are not deductible and do not restore your RRSP contribution room.
The market is tough right now. What happens if I decide not to purchase a home?
Any funds withdrawn from your FHSA which are not used to purchase a qualifying home are subject to income tax. Alternatively, the balance in your FHSA which is not being used to purchase a qualifying home can be transferred into an RRSP or RRIF on a non-taxable transfer.
What would be a qualifying withdrawal?
Eligibility hinges on being a first-time homebuyer and a current resident of Canada at the time of withdrawal for the purchase of your eligible home. A "qualifying home" is characterized as a residential unit situated within Canada. This designation extends to encompass a portion of the capital stock in a cooperative housing corporation, provided that the shareholder holds the right to occupy a residential unit located in Canada. An additional requirement is to possess a documented agreement for the purchase or construction of a qualifying home in Canada by October 1 of the year following the withdrawal year. Additionally, you should have the intention to make the qualifying home your primary residence within one year of either purchasing or constructing it.
Want to learn more?
Talk to your Financial Services Officer about opening up a First Home Savings Account today!
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