First Home Savings Account (FHSA)

There is an exciting new savings vehicle for First Time Home Buyers,  It’s called the First Home Savings Account or FHSA.

With this plan, you can make annual contributions of up to $8,000 with a lifetime contribution limit of $40K towards the down payment of a new home. 

The plan is similar to the Home Buyers Plan where you withdraw from your RRSPs in that you will still receive a tax deduction for your contribution. However, under this plan, you aren’t limited to a $35K withdrawal limit and you’re not required to pay the money back.

You Must be a first-time homebuyer and a resident of Canada and you must intend to occupy the home as your principal residence. The plan can stay open for 15 years and the money can be transferred to an RRSP if you don’t end up buying within that time frame. 

I believe this plan would be especially helpful for newly employed people who don’t have a lot of RRSP contribution room and don’t want to wait to take advantage of the tax savings.

If you’d like to learn more about how you can take advantage of this program please email me.