Discover the advantages of the First Home Savings Account (FHSA), a specialized savings vehicle designed to support first-time homebuyers in Canada. This tax-efficient account allows you to save for a down payment with unique benefits such as tax-free growth and withdrawal.

• Allows “first”-time homebuyers to save for a down payment on a tax-free basis.
• There is a lifetime contribution limit of $40,000 and annual contribution limit of $8,000, beginning in 2023 (contribution room only accrued from the year an FHSA account has been opened).
• You can claim an income tax deduction for contributions made in a particular calendar year.
• You can catch-up up to a maximum $8,000 in a given year of your unused annual contribution amount, subject to the lifetime contribution limit.
• You can contribute to your FHSA until December 31 of the year in which you reach age 71.
• The income and growth earned in your FHSA is not taxed until it is withdrawn and all qualifying withdrawals to purchase a “first” home are non-taxable. Remaining contributions not withdrawn for first home can be transferred tax free to RRSP.

“First” = You did not live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that you owned or jointly owned (or spouse/common-law partner owned) in this calendar year or in the previous 4 calendar years.

* The RRSP Home Buyer Plan can be combined with the FHSA withdrawals for the same home purchase