Your first home – is in sight!
The First Home Savings Account is a new program being offered by the Government of Canada that allows Canadians to save up for a down-payment on their first home, tax free!
How does it work?
This new account allows eligible home buyers to save up to $40,000 ($8,000 annually) tax free! Just like a Registered Retirement Savings Plan (RRSP) all contributions are tax-deductible, and like a Tax-Free Savings Account (TFSA), withdrawals to purchase a first home would be non-taxable. You get the best of both accounts combined to help you reach your home-ownership goals.
You are eligible for a First Home Savings Account if you are:
- A resident of Canada
- At least 18 years of age; and
- A first-time home buyer
How is the FHSA different from the Home Buyers Plan?
The Home Buyers Plan allows you to withdraw up to $35,000 from your RRSP (depending on eligibility and conditions), however the amount must be repaid within 15 years.
While a First Home Savings Account doesn’t need to be paid back, withdrawals are tax-free, and you have up to 15 years to use the funds.
To learn more visit the CRA website.
Contact your branch and speak with any of our investment specialists for more information!