First Home Savings Accounts (FHSA)
Who can qualify? The FHSA is not reserved for first-time buyers. You must be a first-time home buyer to qualify, between the ages of 18 – 71. This means you must not have lived in a home that you or your partner/spouse owned in the current or past four years. What is a First Home […]
Who can qualify?
The FHSA is not reserved for first-time buyers. You must be a first-time home buyer to qualify, between the ages of 18 – 71. This means you must not have lived in a home that you or your partner/spouse owned in the current or past four years.
What is a First Home Savings Account?
A First Home Savings Account (FHSA) is a new registered plan that lets you save tax-free for a down payment on your first qualifying home.
Where can you buy?
The home must be a residential unit located in Canada, and could be either an existing home or under construction. It can be a single family home, semi-detached home, townhouse, mobile home, condo, or an apartment (within a duplex, triplex, fourplex, or apartment building).
When can you contribute?
The annual contribution limit is $8,000 per person, per year, with a lifetime contribution limit of $40,000. There is a maximum holding period of 15 years. When you contribute into an FHSA the contributions are tax-deductible and there are no tax implications when you withdraw the funds.
Why should I open an FHSA?
Contributions to an FHSA allow your savings to grow tax-free with the added benefit of reducing your taxable income. Qualifying withdrawals are tax free, and don’t need to be repaid.
How can I withdraw from my FHSA?
You must have an agreement to buy or build a qualifying home in Canada. Intention must be to occupy the home as your principal residence within 1 year of acquiring the home.
