The FHSA is a new registered account designed to help qualifying first-time home buyers save for their home, tax-free. Available at Educators Financial Group in spring 2023, eligible individuals can contribute up to $8,000 per year, up to a lifetime maximum of $40,000.
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.
The FHSA will be available at Educators Financial Group in the spring of 2023.
Join the waitlist to be the first to know when you can open an FHSA.
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 1 2||Yes, but must be paid back into your RRSP within 15 years 3 4||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||$35K||Cumulative|
1 Withdrawals will only be tax-free if they meet certain conditions. This includes being a first-time homebuyer at the time you make the withdrawal, having a written agreement to buy or build your home before October 1 of the year after you make the withdrawal, and intending to occupy that home as your principal place. The home must be in Canada.
2 After making a withdrawal to buy your qualifying home, you will be required to close your FHSA by the end of the following year and will not be permitted to open another FHSA.
3 Amounts withdrawn under the HBP must be repaid to an RRSP within a maximum of 15 years, beginning as early as the second year following the year of withdrawal.
4 When the amount repaid to the RRSP is eventually withdrawn, it will be taxable at that time.