Tax-Free First Home Savings Account (FHSA)

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In the 2022 Budget, the Government of Canada proposed the introduction of the Tax-Free First Home Savings Account (FHSA), a new registered plan to help Canadians save towards their first home by allowing account holders to contribute up to $40,000 over the lifetime of the plan.

An FHSA combines some of the features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). Like an RRSP, contributions will be tax-deductible. Similar to TFSA withdrawals, when a qualifying withdrawal is made to purchase a qualifying home, the amount withdrawn, including any income or gain, is non-taxable.

Each individual has their own account, and the lifetime limit is $40,000/person. The maximum one can contribute each year is $8,000. Spouses can set up and contribute individually and have access to up to $80,000 together to put toward their first home.

Contact us for more details!