Why you should consider opening a First Home Savings Account before December 31!

February 21, 2024 | Posted by: Jeremy Schaffner

What is a FHSA and why you should open an account before the end of this year!
First Home Savings Account (FHSA): It is a new savings account launched by the federal government to help first-time homebuyers save for their down payment. It combines the benefits of an RRSP and a TFSA, allowing tax-deductible contributions and tax-free withdrawals for eligible home purchases.
Why open a FHSA before Dec. 31: Opening a FHSA this year will allow you to accumulate the contribution room of $8,000 per year, which can be carried over to the following years. You can also transfer money from your TFSA to your FHSA and get a tax refund.
How does the FHSA compare to other savings tools: The FHSA has advantages over the TFSA and the Home Buyers’ Plan (HBP) in terms of tax benefits and flexibility. You can also combine the FHSA and the HBP to use up to $75,000 for your down payment.
How has the FHSA been helping Canadians: The FHSA has been attracting interest from potential first-time homebuyers, with more than 250,000 accounts opened at over 20 financial institutions.

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