FHSA contest: Open an account and win $5,000
What is an FHSA?
An FHSA is a tax-free savings account designed to help future homeowners save for the purchase of a qualifying first home in Canada.
Combining the advantages of an RRSP and a TFSA, the FHSA gives you a deduction that reduces your annual taxable income and allows you to generate tax-free returns.
You can then use the accumulated funds to finance the purchase of a first home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn from the FHSA.
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Eligibility criteria
• Must be a Canadian resident.
• Must be of legal age in your province of residence.
• Must not be over 71 years of age as of December 31 of the current year.
• Must not have had a qualifying home in Canada as your principal place of residence that you or your spouse owned during the part of the calendar year preceding the opening of the FHSA or during the preceding four calendar years.
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Contribution deadline
The FHSA contribution deadline is December 31 of each year.
Contribute online*Available if you have already opened an FHSA.
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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.
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Tip
Contributing to an FHSA reduces your taxable income and may entitle you to a tax refund.
What is an FHSA?
An FHSA is a tax-free savings account designed to help future homeowners save for the purchase of a qualifying first home in Canada.
Combining the advantages of an RRSP and a TFSA, the FHSA gives you a deduction that reduces your annual taxable income and allows you to generate tax-free returns.
You can then use the accumulated funds to finance the purchase of a first home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn from the FHSA.
-
Eligibility criteria
• Must be a Canadian resident.
• Must be of legal age in your province of residence.
• Must not be over 71 years of age as of December 31 of the current year.
• Must not have had a qualifying home in Canada as your principal place of residence that you or your spouse owned during the part of the calendar year preceding the opening of the FHSA or during the preceding four calendar years.
-
Contribution deadline
The FHSA contribution deadline is December 31 of each year.
Contribute online*Available if you have already opened an FHSA.
-
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.
-
Tip
Contributing to an FHSA reduces your taxable income and may entitle you to a tax refund.
$8,000
to win
Your first home
it starts now!
How to enter?
It’s easy, just open an FHSA.
Enter now See contest rulesKey advantages of the FHSA
- As with an RRSP, your FHSA contributions reduce your annual taxable income.
- Your savings and returns generated in the FHSA are tax free upon withdrawal.
- Unlike RRSP withdrawals under the Home Buyers’ Plan (HBP), sums withdrawn from an FHSA for the purchase of a first home do not have to be repaid.
- You can carry forward up to $8,000 of unused contribution room, for a maximum annual contribution of $16,000.
- You can transfer funds from your FHSA to your RRSP or your RRIF if you are not using them.
Did you know?
To purchase your first home, you can combine savings with returns from your TFSA and your FHSA, and up to $35,000 from your RRSP through the Home Buyers’ Plan (HBP). An advisor can work with you to determine the best strategy for you.
| FHSA | RRSP | TFSA | |
|---|---|---|---|
| Main objective | Buying a first home | Savings and retirement | Miscellaneous savings |
| Secondary objective | Savings and retirement | HBP | Savings and retirement |
| Minimum age | Age of majority | None | Age of majority |
| Maximum age | 71 | 71 | None |
| Annual contribution limit | $8,000 per year $40,000 lifetime maximum |
18% of your previous year’s income or the current year’s annual limit | $6,500 in 2023 |
| Annual contribution period | January 1 to December 31 | March 2, 2023 to February 29, 2024 | January 1 to December 31 |
| Maximum participation period | Close on December 31 of the year in which the earliest of the following events occur: • The fifteenth anniversary of your first FHSA • The year following your first eligible withdrawal • Your 71st birthday |
Up to age 71 | None |
| Plan conversion | Can be transferred to a RRIF or RRSP with no implications | Possible with a RRIF, no later than age 71 | No |
How do I open an FHSA?