FHSA – What You Need to Know
A tax advantaged registered account designed to help Canadians purchase their first home. Receive a tax deduction for contributions and if invested, assets can grow over time. Upon purchasing a qualifying home, funds can be withdrawn from the FHSA, tax free.
Qualifiers
- Canadian resident
- Age 18 or older
- Valid Social Insurance Number
- Considered a first time home buyer
Account Details
- Once opened, annual contribution limit of $8,000
- Maximum lifetime contribution limit of $40,000
- Carry forward unused portions of your contribution up to $8,000
Not buying a qualifying home - What are my options?
- Transfer assets from your FHSA into a RRSP or RRIF, tax deferred
or
- Withdraw assets from the FHSA. If a qualifying home is not purchased, the assets are taxed as income