Posted by: Karim Ali

Coffee with Karim

Want to combine the powers of TFSAs and RRSPs?

A first home savings account allows you to save for your first home tax-free, with limits. Here’s a very short (and incomplete) guide.

How do you qualify?

You must be…

  • At least 18 years old
  • No more than 71 years old on December 31 of the year
  • A resident of Canada
  • A first-time home buyer

Be careful! Certain provinces and territories will require you to be 19 to enter into a contract to open a FHSA, and this definition of a “first-time home buyer” is rather complicated. Find out more about it in the Government of Canada’s link at the end of this blog.

Some rules ...

  • You may only contribute up to $8,000 in the year you open your FHSA.
  • The lifetime limit for the FHSA as of the time of this blog is $40,000.
  • Many more limits apply. For the full scoop, visit this Government of Canada page pertaining to the FHSA.

Either way, make sure you speak with a professional before moving your money around. If you have any unanswered real estate questions, reach out to Karim at karim@nickfundytus.ca, or come have a coffee on me.

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