The #1 Savings Tool for First-Time Homebuyers

First Home Savings Account (FHSA) – Your Secret Tool for Home Purchasing!

If you are a first-time home purchaser, the First Home Savings Account (FHSA) is a powerful, tax-free tool that will allow you to save quicker and wiser. With tax-free investment, tax-deductible deposits, and tax-free withdrawal, it is one of Canada's greatest first-time home purchaser savings accounts!

Why FHSA is a No-Brainer

✔ Tax-Free Growth & Withdrawals – Unlike a regular savings account, your money grows tax-free in an FHSA. And when it's time to buy your dream home, you can withdraw it all tax-free!

✔ Instant Tax Savings – Every dollar you save reduces your taxable income, just like an RRSP. This is equivalent to saving on taxes upfront while you prepare to buy your house.

✔ Investment Flexibility – You have the option to invest in stocks, bonds, mutual funds, ETFs, GICs, and other investment products, giving your funds more growth capacity than a basic savings account.

✔ No Repayment Required – Unlike the Home Buyers' Plan (HBP), where you repay the borrowed RRSP value within 15 years, FHSA withdrawals are tax-free and forever!

Important FHSA Facts You Need to Know

✅ Who Is Eligible to Open an FHSA?

✔ Must be 18+ (or the local age of majority where you reside)

✔ Must be a resident of Canada

✔ Must be a first-time home buyer, i.e., you didn't have a home in the last 4 years

✅ How Much Can You Contribute?

✔ $8,000 per year (lifetime limit: $40,000)

✔ Unused contribution room is carried forward, so you don't lose out if you can only contribute the entire amount in any given year.

✅ What Can You Invest In?

✔ Stocks, ETFs, Bonds, Mutual Funds, GICs, and more

✔ Choose an investment strategy that fits your objectives—growth, stability, or a mix of both!

✅ What if You Don't Buy a Home?

✔ Don't worry! You can roll over your FHSA balance to your RRSP or RRIF tax-free at any time, and your savings keep growing for your future needs.

✔ Since RRSP withdrawals are taxed, this plan lets you postpone taxes until retirement when your income will likely be lower.

How to Withdraw Tax-Free from Your FHSA

For your withdrawal to be tax-free, you must meet these conditions:

✔ You must be a first-time homebuyer at the time of withdrawal.

✔ You must have a signed agreement to purchase or build a qualifying home by October 1 of the following year.

✔ You have to move into the house within one year of withdrawal.

As opposed to the Home Buyers' Plan, you don't need to repay this cash—it's yours to retain!

⚠️ Steer Clear of These Expensive Blunders!

❌ Excess contributions? The government imposes a 1% monthly penalty on excess contributions, so ensure that you stay within your threshold!

❌ Not Utilizing Your FHSA in a Timely Manner? The account has to be closed by the age of 71 or within 15 years—whichever comes first. Don't use it, and roll money into an RRSP to avoid tax penalties.

❌ Delaying to Begin? The earlier you open an FHSA, the longer your money will have to accumulate tax-free—so don't delay!

Hot Tip to Get the Most Out of Your FHSA

Double Your Savings with Your Spouse! If your spouse or common-law partner is also qualified for an FHSA, you can contribute money to them without paying tax penalties. This means:

✔ Double the tax deductions

✔ Double the tax-free investment growth

✔ Quicker savings for your home!

Wait No More? Start Saving towards Your Dream First Home Now!

Home prices are rising, but with the First Home Savings Account (FHSA), you can get ahead of the game by saving tax-free. Don't let this opportunity pass you by to make home ownership more accessible and affordable!

Ready to take the first step? Open your FHSA today and start your journey to your dream home!

Got questions? Reach out to us!