FHSA - TAX-FREE FIRST HOME SAVINGS ACCOUNT
What is a Tax-Free First Home Savings Account?
This new Savings Account allows first-time homebuyers the ability to contribute up to $8000 annually with a maximum lifetime contribution limit of $40,000. This registered plan combines the features of RRSP and TSFA. Like a RRSP, contributions towards the account would be tax-deductible. And like a TFSA, incomes/growths as well as withdrawals would be non-taxable.
ELIGIBILITY:
1. Must be a first time home buyer.
2. Must be a Canadian resident.
3. Must be at least 18 years of age.
CONTRIBUTION LIMITS:
1. Up to $8000 per year.
2. Up to $40,000 over your lifetime.
BENEFITS:
1. Non-taxable investment income, if used to purchase a first home.
2. Tax-deductible contributions.