Are you a first-time homebuyer?
Have you started saving or been thinking about how you’re going to save for a down payment for your first home, but need a plan to get there? Look no further than the First Home Savings Account (FHSA)! An FHSA is a new registered plan that gives prospective first-time homebuyers the ability to save up to $40,000 for a down payment on a tax-free basis.
With an FHSA, you’ll get:
- Lower taxable income
Contributions are tax-deductible and you can contribute or transfer from your RRSP up to $8,000 per year. This allows your savings to grow tax-free!
- Tax-Free withdrawals
Withdrawals used to purchase a qualifying home are non-taxable and no repayment is required for withdrawal for your home purchase.
- Carry forward unused contribution room
Carry forward unused portions of your FHSA participation room up to a maximum of $8,000. Unused funds can also be transferred to an RRSP or RRIF.
To open an FHSA, you must be:
- At least 18 years of age but less than 72
- A resident of Canada and hold a valid SIN
- A first-time home buyer
Have questions? Give us a shout.