The Tax-Free First Home Savings Account (FHSA) is now being offered
at National Bank.
To open your FHSA this year, you can make an appointment at FHSA
| National Bank (nbc.ca)
- What is it? It’s a tax-free savings account for the upcoming
purchase of your first home.
- Who can access it? Are
you a resident of Canada between 18 and 71 years old? Do you qualify
as a “first-time home buyer”? You may be eligible. Other criteria
are the benefits? You pay less tax while saving.
- Contributions are tax-deductible
- Withdrawals to
purchase a first home are also non-taxable
- Returns on
investments are tax-free
- You can make your down
payment using funds from both your FHSA, and RRSP using your
Home Buyer’s Plan (HBP)
- Unlike the HBP, the funds don’t
need to be repaid and there is no withdrawal limit
- How much can you save? You can contribute up to
$8,000 a year, which can be carried forward if you don’t contribute
the full amount (a maximum of $8,000 in contributions can be carried
forward to the following year). Your contribution room starts
accumulating as soon as you open your account, up to a lifetime
- If after 15 years, you no longer plan to
purchase a property, you can transfer the amounts to your RRSP
without affecting your RRSP contribution room.