First Home Savings Account (FHSA)

Your Edmonton Mortgage Broker: Natalie Wellings

The First Home Savings Account was launched in 2023 by the Government of Canada and combines features of RRSP’s and TFSA’s.

  • Similar to an RRSP, contributions made to a FHSA are tax deductible.
  • Unlike the Home Buyers Plan (RRSP Program) where withdrawals need to be repaid within 15 years, withdrawals from a FHSA DO NOT need to be repaid.
  • You can contribute up to $8,000 a year to a lifetime maximum of $40,000.
  • Similar to a TFSA, the FHSA allows for tax free growth within the account so you can invest in a multitude of options without capital gains.

The FHSA is a great choice to save for your first home with enjoying a tax deduction as well as tax free growth within the account. This combined with no required repayments makes it a great option to save for the down payment on your first home.

Click HERE for more information on the FHSA program and to read about rules and eligibility requirements.

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