What you need to know about Canada’s new first home savings account
What you need to know about Canada’s new first home savings account
July 6, 2023
Buying a home is becoming increasingly challenging for Canadians. But there is a new solution available to help buyers take their first step onto the housing ladder.
As of April, first-time buyers can open a first home savings account (FHSA). This account is specifically designed to help first-time buyers purchase their first home.
It combines the benefits found in two existing registered accounts: the registered retirement savings plan (RRSP) and the tax-free savings account.
An FHSA provides a tax shelter for investments, turbo-charging the growth of savings for a home down payment. When a taxpayer contributes to their FHSA, their tax bill is lowered for that year. Additionally, when the funds are withdrawn to buy a first-time home, no tax is owed.
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