UNDERSTANDING THE FHSA
What is the FHSA?
The FHSA, or First Home Savings Account, is a government program designed to assist first-time home buyers in Canada. It combines the tax deduction benefits of the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP). By opening an FHSA, you can contribute funds and receive a tax refund on the amount deposited.
Who is eligible for an FHSA?
Any Canadian resident can open an FHSA as long as they meet certain requirements. This includes permanent residents who are looking to purchase their first home. To be considered a first-time home buyer, you must not have owned a home for at least four years. If you meet these criteria, you are eligible to take advantage of the FHSA program.
Once your FHSA is opened you can contribute up to $8000 / year to a lifetime maximum of $40000.
For more information contact your financial advisor.