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What is an FHSA?

The FHSA is a new registered account designed to help qualifying first-time home buyers1 save for their home, tax-free. Eligible individuals can contribute up to $8,000 per year, up to a lifetime maximum of $40,000.

Who is eligible?

To open an FHSA, you must be a Canadian resident between the ages of 18 and 71 years old and a “first-time homebuyer” – meaning you or your spouse or common-law partner did not own a qualifying home that you lived in as your principal residence in the year the account is opened or in any of the four preceding calendar years.

Learn more about how the new Tax-Free First Home Savings Account works and how education members can tap into its benefits.

Ready to start saving faster for your first home?

Reach your homeownership goals sooner with an FHSA, now available at Educators Financial Group.

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The benefits of an FHSA

  • Invest up to $40,000 in contributions for your first home, tax-free, over the span of 15 years or by December 31 of the year you turn 71 (whichever comes first)
  • Combines the tax benefits of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP), where your contributions are tax-deductible and any qualifying withdrawals from the account are tax-free
  • Tax deductions can be carried forward indefinitely (and used when higher on the pay grid)
  • Unused contribution room can be carried forward to the following year as long as you’ve opened an FHSA

At a glance: FHSA vs. RRSP Homebuyers’ Plan vs. TFSA

The FHSA can be used in combination with an RRSP Homebuyers’ Plan and your TFSA. Here’s how they compare:

  FHSA RRSP Homebuyers’ Plan TFSA
Contributions are Tax Deductible Yes Yes No
Withdrawals For Home Purchase are Tax-Free Yes, if they meet certain conditions 2 3 Yes, but must be paid back into your RRSP within 15 years 4 5 Yes
Unused Contributions Carry Forward Yes, but you can carry forward a maximum of $8,000, for a maximum contribution of $16,000 in a given year Yes Yes
For 1st Time Homebuyers Only Yes Yes No
Total Contribution Limit $40K $60K Cumulative

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