The First Home Saving Account (FHSA) has been rolled out and can be opened in most banks this year. You are eligible if you meet the following criteria:
• Are between 18 and 71 years old.
• Live in Canada.
• You and your spouse/common-law partner do not own/jointly own the primary residence, both at the year of opening the FHSA account and in the preceding 4 years
Why should you consider opening an FHSA account as early as possible if you are eligible?
• You can start saving, with a maximum contribution of up to $8,000 per year and a total cap of $40,000.
• Any unused contribution room can be carried forward to the next calendar year.
• Taxes deductible, similar to a Tax-Free Savings Account (TFSA) account.
• You’ll have extra contribution room in addition to TFSA and RRSP.
• Even if you don’t use it within the 15-year maximum participation period, the funds can be transferred to an RRSP and RRIF on a tax-deferred basis.
