Tax-Free First Home Savings Account (FHSA) – Coming in 2023 (Industry Platform Launch June 2023)
- Allows first-time home buyers to save for a down payment on a tax-free basis
- Your contributions are tax deductible
- You can contribute to your FHSA until December 31 of the year in which you reach age 71
- The income earned in your FHSA is not taxed until it is withdrawn and withdrawals to purchase a first home are non-taxable. Remaining contributions not withdrawn for first home can be transferred tax free to RRSP.
- There is an annual contribution limit of $8,000 and a lifetime contribution limit of $40,000