{"id":10252,"date":"2023-11-24T15:11:36","date_gmt":"2023-11-24T20:11:36","guid":{"rendered":"https:\/\/www.effisca.com\/fhsa-at-a-glance\/"},"modified":"2023-11-24T15:12:48","modified_gmt":"2023-11-24T20:12:48","slug":"fhsa-at-a-glance","status":"publish","type":"post","link":"https:\/\/www.effisca.com\/en\/fhsa-at-a-glance\/","title":{"rendered":"FHSA at a glance!"},"content":{"rendered":"\n

What is a First Home Savings Account (FHSA)?<\/h2>\n\n

A Tax-Free Savings Account for First-Time Home Buyers<\/a> (FHSA) is an innovative type of account designed to help Canadian first-time home buyers save efficiently for their first home purchase.<\/p>\n\n

The FHSA combines the advantages of Registered Retirement Savings Plans (RRSPs<\/a>) in terms of the deductibility of contributions, and Tax-Free Savings Accounts (TFSAs<\/a>) in terms of the absence of taxation on income generated and on qualified withdrawals.<\/p>\n\n

The contributions to the account are fully deductible, while any income earned on the account remains tax-free. In addition, withdrawals from the account for the purchase of property are also tax-free.<\/p>\n\n

How does the FHSA work ?<\/h2>\n\n

First-time homebuyers can contribute up to $8,000 per year to their FHSA, with a lifetime contribution limit of $40,000.<\/p>\n\n

To accumulate the annual contribution limit of $8,000, you must open a FHSA account; otherwise, no contribution room is generated..<\/p>\n\n

Who is eligible to the FHSA ?<\/h2>\n\n
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  1. You must be a Canadian tax resident.<\/li>\n\n\n\n
  2. You must be 18 years of age or older.<\/li>\n\n\n\n
  3. You must be considered a first-time home buyer.<\/li>\n<\/ol>\n\n

    What should I know before opening a FHSA ?<\/h2>\n\n