An FHSA is a savings account designed to help Canadians save for their first home. Contributions are tax-deductible, and the funds grow tax-free until they are used for purchasing a home.
Key Features of an FHSA
Tax-Deferred Growth: Contributions are tax-deductible, and savings grow tax-free.
First-Time Home Buyer Focus: Funds must be used for a first home purchase.
Contribution Limits: Set annual contribution limits and a lifetime maximum.
Flexible Investment Options: Choose how to invest your FHSA savings.
Benefits of an FHSA
Tax Savings: Contributions reduce your taxable income, and withdrawals for a home are tax-free.
Home Purchase Support: Helps you save faster for your first home.
Flexible Contributions: Save at your own pace, with the option to carry forward unused contribution room.
Security for Home Buyers: Provides a structured way to save for a major financial milestone.
Note
This overview of FHSA provides a basic idea. Rules, contribution limits, and benefits may vary based on individual situations. It’s best to consult a licensed advisor for specific guidance.