First Home Savings Account

The First Home Savings Account

Launched officially on April 1st 2023, the First Home Savings Account program is now accessible, offering an exciting opportunity for aspiring homeowners to save up to $40,000 tax-free towards their down payment while exploring various investment options to grow their savings.

Prepare to turn your homeownership dream into reality with this innovative initiative!

Key Highlights:

First-time homebuyers can stash away up to $40,000 tax-free specifically for their down payment.

The account allows for diverse investment opportunities, including mutual funds, publicly traded securities, government and corporate bonds, and guaranteed investment certificates (GICs), enabling individuals to expand their savings strategically.

Withdrawals from the account for qualifying first-home purchases are tax-free.

Eligibility & Contribution Limits:

Open to any Canadian resident aged 18 or above who hasn’t owned a home or resided in a home owned by their spouse or common-law partner in the past four calendar years.

Contribution caps are set at $8,000 per calendar year, with a lifetime limit of $40,000. Unused contribution room can be carried forward for future years, offering flexibility in saving strategies.

Qualifying First Home Purchases:

Prospective buyers must qualify as first-time homebuyers and be Canadian residents during both the withdrawal and purchase phases.
A written agreement to purchase or construct a qualifying home in Canada must be in place before October 1 of the year following the withdrawal.
The intention to occupy the purchased or constructed home as the principal residence within one year of completion is mandatory.

For more detailed information, refer to the Canada Revenue Agency page.

Additional Considerations:

In case the funds are not utilized for a first-home purchase, individuals have the option to transfer the remaining balance to a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF). Alternatively, they can withdraw it on a taxable basis by the end of the 15th year after opening the account or by the year-end of turning 71.

This initiative offers a promising pathway for first-time homebuyers to embark on their homeownership journey, providing not only financial benefits but also invaluable opportunities for long-term investment growth.

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The First Home Savings Account

The First Home Savings Account

Key Highlights:

Eligibility & Contribution Limits:

Additional Considerations:

Start Now and Secure These Rates

5yr Fixed Insured

5yr Variable Insured

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The First Home Savings Account

The First Home Savings Account

Key Highlights:

Eligibility & Contribution Limits:

Additional Considerations:

Start Now and Secure These Rates

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5yr Fixed Insured

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5yr Variable Insured

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