What is a First Home Savings Account?

A First Home Savings Account (FHSA) is a registered plan designed to help Canadians save for their first home with tax-deductible contributions of up to $8,000 annually, to a lifetime maximum of $40,000. Unused contribution room carries forward, allowing for a potential lump sum deposit greater then $8,000. Funds and earnings are tax free as long as they are used for a qualified first home purchase. At CG Wealth Management, we will craft a portfolio that matches your risk tolerance to drive tax-free growth until you are ready to purchase your first home.

  • To open a FHSA you must:

    • Be a Canadian Resident.

    • Be age of majority in your residing province.

    • A first-time homebuyer (you and/or your spouse or common-law partner did not own a home in the four previous calendar years).

  • The following 4 criteria must be met to make a tax-free withdrawal:

    1. Be a first-time homebuyer (you and/or your spouse or common-law partner did not own a home you lived in during the year you open the FHSA or the four previous calendar years).

    2. Have a written agreement to buy or build a qualifying home in Canada, with acquisition by October 1 of the year following the FHSA withdrawal.

    3. Intend to occupy the home as your principal residence within one year of buying or building it.

    4. Remain a Canadian resident from the time of withdrawal until the home is acquired.

  • A house, condo, townhouse, or mobile home in Canada intended as your principal residence.

  • Funds must be used by December 31 of the 15th year after opening your FHSA, or the year you turn 71—whichever comes first. If unused by then, you can transfer the balance tax-free to your RRSP (without affecting contribution room) or RRIF. Otherwise, withdrawals are taxable.

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