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; and
- 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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