First Home Savings Account (FHSA)

Made available by the Federal Government in 2023. A Tax-Free First Home Savings Account (FHSA) is a registered plan product meant to help first-time home buyers save for a home (up to certain limits). This product is now available as of April 1, 2023.

The FHSA is not meant to replace an RRSP or a TSFA. This should be seen as a complementary product to help you save for your first home.

Who qualifies?

• You must be at least 18 years old (or age of majority).
• You must be a resident of Canada.
• Must not have lived in a home you have owned at any time during the year the FHSA is opened or during the four preceding calendar years.

Key Features:

• Individuals can contribute to a maximum of $8,000 per year.
• FHSA Contributions are tax-free up to $40,000.
• Income earned is also tax-free.
• Contributions to a FHSA reduce taxable income.
• Possibility to participate in the HPB and FHSA to purchase a qualifying home.
• A tax-free transfer of funds from RRSP to a FHSA is permitted, subject to limits.

For more information visit the CRA website, or contact us.