An FHSA is a registered account designed specifically for first time home buyers in Canada. It combines the best features of an RRSP and a TFSA. It’s one of the most tax efficient ways to build a down payment.
✔ Contributions are tax deductible
✔ Money grows tax free
✔ Withdrawals for your first home are tax free- Save up to $8,000 per year
- You are at least 18 years of age
- Haven’t owned or lived in a home you owned in the current or past 4 years
The FHSA helps you:
✔ Money grows tax free
✔ Withdrawals for your first home are tax free
Why the FHSA Is So Powerful
- Save up to $8,000 per year
- $40,000 lifetime contribution limit
- No tax when you use it to buy your first home
- No repayment required (unlike the RRSP Home Buyers’ Plan)
Who Can Qualify for One?
- You must be a Canadian Resident- You are at least 18 years of age
- Haven’t owned or lived in a home you owned in the current or past 4 years
Why This Matters in Today’s Market
In higher priced markets like Vancouver down payments are often the biggest barrier, not income.The FHSA helps you:
- Reduce taxes while saving
- Grow your down payment faster
- Buy with more confidence when the timing is right
- Grow your down payment faster
- Buy with more confidence when the timing is right
