What is a First Home Savings Account (FHSA)?
Saving for your first home just got a little easier with the introduction of the new First Home Savings Account. A FHSA combines the features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). Like an RRSP, contributions you make to a FHSA are tax-deductible; like a TFSA, withdrawals you make to purchase a first home will not be taxable.
However, unlike the Home Buyers’ Plan, the funds from the FHSA do not need to be paid back.
FHSA is available for Canadians, who are 18 years old or older. A first-time homebuyer (meaning, you and/or your spouse or common-law partner) have not owned a home in the year the account is opened or the preceding four calendar years.
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