FHSA: First Home Savings Account

What is the FHSA?

FHSA is the First Home Savings Account, a registered account created in 2022 by the government of Canada to help first-home buyers purchase a house. You can save for a house in this account up to a max of $40k. The beauty of this account is it combines both benefits of the TFSA and RRSP. If the TFSA and RRSP had a baby, it’s the FHSA.

Eligibility

You are eligible to open a FHSA Account if you meet the following requirements;

• A Canadian Resident

• Age 18 years and Older

• A first time home buyer

  (This means someone who has not lived in a house they own/jointly own in the current year and the past 4 years. As well as someone who has not lived in a house owned/partially owned by their spouse or common law partner in the current year and past 4 years)

How the FHSA Works?

One of the interesting things to note is you don’t automatically start gaining your contribution room from when you are 18 years old like the TFSA, rather your yearly contribution room starts from the year you open the account. If you plan to buy a house (Not an investment property) within the next 15 years, I recommend you open the account.

Here are some other attributes of this account: