Mortgages
What is an FHSA and how does it work?
- Who qualifies: Canadian residents 18+ who haven't owned a home they lived in during the current year or previous four years.
- Carry-forward: up to $8,000 of unused room carries to the next year.
- Time limit: the account must be used within 15 years or by age 71; unused funds can be transferred to an RRSP without using RRSP room.
- Combine it: you can use the FHSA and the RRSP Home Buyers' Plan for the same purchase.
Related Questions
What is an FHSA and how does it work?
The First Home Savings Account lets first-time buyers save up to $8,000 a year ($40,000 lifetime) for a home. Contributions are tax-deductible like an RRSP and withdrawals for a qualifying home are tax-free like a TFSA.
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