First Home Savings Account (FHSA)
Save for your first home with tax benefits and tax-free growth.
What is an FHSA?
The First Home Savings Account (FHSA) is a government registered plan that allows first-time homebuyers to save for a qualifying home tax-free. You can save up to $40,000 (tax free) for your first down payment on a home. Additionally, account holders can withdraw funds for purchasing or building their first home tax-free. To qualify you must be at least 18 years of age or older, a Canadian Resident and must not have owned a property solely or jointly with a spouse or common-law partner within last four years.
$8,000 Annual Contribution Room
Contribute up to $8,000 per year to your FHSA, up to a lifetime maximum of $40,000. Once opened, you can carry forward up to $8,000 per year in unused contributions each year, within the lifetime limit.
December 31st deadline
The FHSA contribution period runs from January 1st to December 31st. Deposit to your FHSA before December 31st to have it counted toward your taxable income deduction for that financial year.
Tax-free
Contributions are tax-deductible and like a TFSA, qualifying withdrawals from your FHSA to purchase your first home are non-taxable. Qualified withdrawals don’t need to be repaid (unlike the Home Buyer’s Plan in an RRSP).
How does an FHSA work?
If you’re a resident of Canada, at least 18 years of age, have a valid social insurance number (SIN) and haven’t owned a home in the last four years, you can contribute up to $8,000 each year and use it to purchase your first home and lower your taxable income.
Grow your investments
Invest your hard-earned money with Community Savings and grow it tax-free, withdraw it when you are ready to purchase your first home. You can personalize and customize your FHSA with many kinds of investments. Mutual Funds*, term deposits and more can all be used to grow your savings in an FHSA.
Pay less income tax
Your FHSA contributions are tax deductible. This means that the more you put into the account the more you can lower your taxable income and generate potential tax refunds.
Flexibility to fit your goals
If you’re not looking to buy for a while. You can grow your savings in an FHSA tax-free for up to 15 years. if you don’t end up buying a home, you can transfer your FHSA savings to an RRSP or RRIF without paying taxes on the transfer
Start your journey toward your first home
Your First Home Savings Account (FHSA) helps you save faster with tax-free growth and contributions. Take the first step today and make your dream home a reality.
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Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.
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