First Home Savings Account | FHSA

What is a First Home Savings Account (FHSA)?

A FHSA is a tax-free registered plan allowing prospective first-time home buyers the opportunity to save for their first home (up to certain limits). It was first introduced by the Federal Government in 2023.

 

To learn about maximizing FHSA contributions to help buy a home sooner, refer to a young Canadian couple looking forward to buying their first home, brought to you by Empire Life.

 

We're here to help answer your questions, Contact Us to arrange to meet with your Advisor about opening a First-Home Savings Plan today.

 

If you wish to learn about the FHSP before reaching out, below is information to help you understand the new savings plan.

 

Important CRA plan information:

  • To open an FHSA, you must be a qualifying individual.
  • Maximum participation in the FHSA begins when the first FHSA account is opened and ends on December 31 of the year in which the earliest of the following events occur:
    • the 15th anniversary of opening your first FHSA,
    • you turn 71 years of age,
    • or the year following your first qualifying withdrawal from your FHSA.
 

Eligibility Criteria:

  • at least 18 years of age;
  • not more than 71 years of age on December 31 of the year
  • a resident of Canada; and
  • af first-time home buyer 

 

Contribution deadline:

  • The FHSA contribution deadline is December 31 each year.  Unlike with an RRSP, you cannot contribute to your FHSA until the following March 1.

 

Contribution room:

  • You can contribute up to $8,000 per year to your FHSA, for a maximum of $40,000 during your lifetime.
  • You can also carry forward up to $8,000 of unused contribution room from one year to the next, for a maximum annual contribution of $16,000. 

 

Stratagy

  • If you are eligible for the FHSA, open the account before December 31st to begin accumulation of the eligible contribution room   

 

1. A "first-time home buyer" for the purpose of opening an FHSA is different than a "first-time home buyer" for the purpose of making a qualifying withdrawal.

For purpose of opening an FHSA, a 'first-time home buyer' is:

You will be considered to be a first-time home buyer if you did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either:

    • you owned or jointly owned; or
    • your spouse or common-law partner (at the time the account is opened) owned or jointly owned

For purpose of a qualifying withdrawal,  a 'first-time home buyer' is:

You will be considered to be a first-time home buyer if you did not, at any time in the current calendar year before the withdrawal (except the 30 days immediately before the withdrawal) or at any time in the preceding four calendar years, 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.

 

Contact Us to arrange to meet with your Advisor about opening a First-Home Savings Plan today.