The 2022 Federal Budget referenced the introduction of a new First Time Home Savings Account (FHSA). The FHSA is intended to help Canadians save and fulfill their dreams of home ownership.
The FHSA is a new registered account that will provide the opportunity for Canadians to save up to $40,000 on a tax-free basis to put towards purchasing their first home in Canada. It combines the benefits of tax-deductible contributions as with a Registered Retirement Savings Plan (“RRSP”) and tax-free withdrawals as with a Tax-Free Savings Account (“TFSA”). The draft legislation proposes the FHSA will be available starting on January 1, 2023.
We have attached an overview of the proposed legislation outlining the details of the new FHSA. Some of the details include:
- Who is eligible to contribute: an individual must be at least 18 years old, a Canadian Resident and a First Time Home Buyer
- Annual and Lifetime Contribution Limits: maximum $8,000 annually; $40,000 lifetime
- Eligible Withdrawals and Closing the Accounts
We will continue to provide updates as they become available. Please contact us with any questions in the meantime.
Click here to read the overview.
