The new Tax-Free Home Savings Account (FHSA) will allow eligible Canadians to save up to $40,000 for their first home. This account is tax-free, so it allows your investments to grow towards the down payment of your first home.
eligible for the FHSA?
- You need to be a resident of Canada
- You must be at least 18 years of age
- You must be a first-time home buyer (have not owned a home in which you have lived at any time in the year the account is opened or during the previous four calendar years)
the maximum contribution limit?
You can contribute up to $8,000 each year
FHSA be used in conjunction with the Home Buyers’ Plan (HBP)?
The FHSA and the HBP can be combined same qualifying home purchase.
qualifies as a non-taxable withdrawal?
- The taxpayer must be a first-time homebuyer
- The qualifying home must be located in Canada
- They must have a written agreement to buy or build a qualifying home before October 1st of the year following the withdrawal
- They must intend to occupy the qualifying home as their principal residence within one year after buying it or building it
the deadline to close the account?
The account must be closed within one year of the first qualifying withdrawal, on December 31st of the year of the account’s 15th anniversary or when the individual turns 71 years old, whichever happens first.
Are you a First-Time Homebuyer and looking to learn more about the Tax-Free Home Savings Account or how to get pre-approved for a mortgage? Contact a One Link Mortgage Broker today for a FREE no obligation consultation to learn what your options are.