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 6.00%, 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 Like TFSA withdrawals, when a qualifying withdrawal is made to purchase a qualifying home, the amount withdrawn, including any income or gain, is non-taxable.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.

• Account will only be available for the fiscal year of 2023
• Commitment letter must be signed pledging this money will be transferred into a FHSA once available.
• Funds are locked in. The only circumstance when a withdrawal will be accepted is when it is for the purchase of a home. The signed and complete Purchase and Sale Agreement must be presented to staff, and the OCCU FHSCA Withdrawal waiver must be signed by one employee and one manager.
• Interest paid will be calculated daily, paid annually in January of 2024.
• Interest earned will be used towards the members contribution, or if the maximum limit has been deposited, ($8,000.00) interest will be paid in cash.
• Interest paid in cash will be deposited into either a chequing account, or alternative savings account under their OCCU membership.
• Members must be in good standing, with their $100 share requirement in place.
• If members hold a joint account, and both members would like to contribute, two FHSA’s will be opened, one for each person.
• If it is a joint account and only one member would like to contribute, only that member will be able to have access to the FHSCA.
• On joint accounts, members will need to sign an agreement form stating the funds deposited belong solely to the person who has made the contribution.
• Commitment that OCCU will handle the transfer into the official FHSA when product becomes available.
• If members obtain a mortgage with OCCU, a rate discount may be applied subject to the Credit Union’s policies.
• Rates are subject to change.