How the First Home Savings Account (FHSA) Can Help You Buy Your First Home!

How the First Home Savings Account (FHSA) Can Help You Buy Your First Home

If you’ve been dreaming of owning your first home, there’s a powerful tool designed just for you — the First Home Savings Account (FHSA). This registered account helps Canadians save for their first home faster by combining tax benefits with flexibility and growth potential.

🗓️ Contribution Deadline

The FHSA contribution deadline is December 31 of each year — so don’t miss your chance to contribute before the year ends!

💰 Contribution Limits

You can contribute up to $8,000 per year, with a lifetime maximum of $40,000.

If you don’t use your full contribution room, you can carry forward up to $8,000 to the next year — meaning you could contribute as much as $16,000 in a single year.

🌟 Key Benefits of the FHSA

   •   Tax savings: Your contributions reduce your taxable income, potentially leading to a tax refund.

   •   Tax-free growth: Any investment returns within your FHSA are tax-free.

   •   Tax-free withdrawals: When you’re ready to buy your first home, withdrawals from your FHSA are completely tax-free — unlike the RRSP Home Buyers’ Plan, there’s no repayment required.

   •   Flexibility: If you decide not to use your FHSA for a home purchase, you can transfer the funds to your RRSP or RRIF without penalty.

💡 Pro Tip

You can combine your FHSA savings with your TFSA and up to $60,000 from your RRSP through the Home Buyers’ Plan (HBP) to maximize your down payment power.

🏠 Ready to Take the Next Step?

If you’re thinking about buying your first home, the FHSA is a smart starting point — but it’s just one part of your journey. As your REALTOR® , I can help you navigate the entire home-buying process, from saving to securing the right property.

📲 Contact me today at 905.808.1586 to discuss how you can make the most of your FHSA and take the next step toward homeownership!