First Home Savings AccountThis 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 Like TFSA withdrawals, when a qualifying withdrawal is made to purchase a qualifying home, the amount withdrawn, including any income or gain, is non-taxable
Who is eligible to open an FHSA?
- Someone who is at least 18 years of age, but no more than 71 years of age on December 31 of the year
- A resident of Canada
- A first time home buyer