Home ownership just got closer.
Buying a new home can be a challenge for many first-time home buyers, but a new registered account is aiming to help Canadians save towards their first home. Now available at League Savings and Mortgage.
First Home Savings Account (FHSA) Details
- To open an FHSA, you must be a Canadian resident and at least 18 years of age.
- You must be a first-time home buyer and haven’t lived in a qualifying home in the current or past 4 calendar years.
- An individual can contribute up to their FHSA contribution room and the amount is not tied to their income.
- Qualifying withdrawals will be non-taxable.
- Unused contribution room can be carried forward, up to one year.
- An individual is able to transfer funds from a pre-existing RRSP to an FHSA on a tax-free basis, within their contribution limit.
- The account can stay open for a maximum of 15 years, or until the end of the year that you turn 71.
Variable Rate FHSA Plan
Pre-Authorized Deposits
Maximize your money by depositing your FHSA contribution weekly, bi-weekly or monthly.
$8,000 Contribution room
Contribute up to $8,000 to your FHSA every year up to a lifetime contribution limit of $40,000. Once opened, you can carry forward up to $8,000 per year in unused contributions, subject to the lifetime limit.
Tax-Free Qualified Withdrawals
Like a TFSA, qualifying withdrawals from your FHSA to purchase your first home are non-taxable. Contributions are tax-deductible but don’t need to be repaid (unlike the Home Buyer’s Plan in an RRSP)
How does the FHSA compare to other registered plans?
The FHSA combines features of other registered plans like the RRSP and TFSA. These features can help you save money to purchase your first home sooner.
For more information on First Home Savings Accounts (FHSA), please visit the CRA website.
