First Home Savings Account (FHSA)

What is an FHSA?

Available April 2023, the First Home Savings Account (FHSA) is a registered plan specifically designed for Canadians looking to purchase their first home. The FHSA allows you to save tax-free for buying your very own house - but that is not all! As long as you and your spouse/common-law partner over are 18 and and (in some province the legal age is 19 - Opening and closing your FHSAs - Canada.ca)  have never owned a property in the past 4 years (goes back to January 1 of the previous 4 years - Opening and closing your FHSAs - Canada.ca)  FHSA could be opening doors to an exciting future just around the corner. Take advantage of this opportunity today! With FHSA's tax-free savings plans, it will be easier than ever for you reach your goal of owning a place to call your own.

Reasons to Invest in an FHSA:

A First Home Savings Account (FHSA) is an excellent way for first-time home buyers to save money for a down payment on their future dream home. There are several advantages to investing in an FHSA, including:  

1. Tax Benefits: Investing in an FHSA provides tax benefits that can help you maximize your savings. Use it to save up to $40,000 for your first home. The contributions you make can be deducted from your taxable income, reducing the amount of taxes you owe. 
2. Flexible Deposit Options: An FHSA allows you to deposit and qualified withdrawls of money as needed (Design of the Tax-Free First Home Savings Account - Canada.ca), giving you more flexibility than other types of saving accounts. You can make regular deposits or single lump sum payments at any time without penalty fees or withdrawal limits. Contribute tax-free for up to 15 years. Non-qualifying withdrawals are taxable as income.
3. Accessibility: Funds in a First Home Savings Account can be accessed with no fees or penalties. This makes it easier to access funds when needed.
4. Low Fees: Opening and maintaining an FHSA does not require additional fees or service charges, meaning all of your money will stay within the account rather than being taken out by penalties or maintenance fees. Pay no taxes on any investment earnings, potentially reducing your tax bill and carry forward undeducted contributions.

Overall, investing in a First Home Savings Account can provide many financial benefits and offers a great way for first-time home buyers to save up for their dream home without sacrificing their hard-earned money along the way.

Key Features of the First Home Savings Account (FHSA):

• $8,000 annual contribution limit – tax-free
• $40,000 lifetime contribution limit
• $0 is how much you will pay in taxes when you withdrawal for your first home

Want to learn more? FHSA FAQs

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