First Time Home Savings Accounts Officially Available
April 26, 2023 · RJM Wealth
The First Time Home Savings Account (FHSA) is now officially approved and available. This is an absolute no brainer for people over 18 who do not own a home and plan to.
Eligibility
Applicants must be Canadian residents, at least 18 years old, and first-time homebuyers.
Contributions
Annual contributions are capped at $8,000 with a $40,000 lifetime maximum. Contributions are tax-deductible like RRSP contributions, with unused room carrying forward annually up to $8,000.
Withdrawals
Withdrawals require applicant residency and first-time buyer status, with all funds directed toward qualifying home purchases. Couples may each maintain accounts for the same property. A written purchase or construction agreement must exist before October 1st of the following calendar year.
Account Duration
Accounts remain open for 15 years, until age 71, or following withdrawal periods. Unused funds may transfer to RRSPs on a non-taxable basis or be withdrawn subject to income taxes.