While we wait for the new registered FHSA accounts to become available, Oshawa Community Credit Union is offering future first-time homebuyers an innovative savings option: the First Home Savings Commitment Account. This account is simply your commitment that when the FHSA becomes accessible, the funds will be transferred into the registered plan. This is NOT an official FHSA, meaning your interest earned is not tax sheltered, and your contribution is not tax deductible, however when the rollover occurs, these benefits will be applicable.

This account will yield an interest rate of 10.00%, paid annually, or when moved to your FHSA, whichever is sooner. The interest earned during this period can either be used toward your contribution or taken in cash if you have deposited the maximum annual limit of $8,000. These funds will be locked in until the FHSA is available, and the transfer can be completed.

Our goal is that this limited time special account will help first time home buyers make their dreams of becoming a homeowner a reality.

This is a new registered plan helping Canadians save towards their first home. Account holders can contribute a maximum of $8,000 annually, to a total of $40,000 over the lifetime of the plan. An FHSA combines some of the features of a Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Like an RRSP, contributions will generally* be tax-deductible. Like TFSA withdrawals, when a qualifying withdrawal is made to purchase a qualifying home, the amount withdrawn, including any income or gain, is non-taxable.

*To learn more about the terms and conditions regarding a registered First Home Savings Account, visit the Government of Canada website.