Investment for Canadian Employees Part 9 – FHSA

I didn’t think there was anything more to talk about, but then a thought occurred to me.

FHSA (First Home Savings Account)

This didn’t apply to me, so I wasn’t paying attention, but if you’re an office worker who doesn’t currently own a home, sign up quickly!

You can save up to $8,000 per year and up to $40,000. The accumulated amount is tax deductible, so the tax is reduced accordingly.

What’s even more fantastic is that you can withdraw the money you save when buying a house and not have to pay any taxes. There is no need to re-enter it like an RRSP’s HBP. This is really Tax Free!! no see!

There are some conditions, but basically, if you are an office worker who has just started a job and does not own a home, fill out FHSA first before putting money into RRSP or TFSA.

Of course, it would be good to add FHSA and fill out RRSP, but you will have a lot of money to spend at a young age, so if you only do one of the two, you should definitely do FHSA.

Currently, all banks are aggressively promoting FHSA. Banks also think this program is good and will sell well.

RBC:

Explore the First Home Savings Account (FHSA)

An FHSA is a type of registered plan, which means you can hold investments in it to help you reach your goal of owning a home faster.

CIBC:

fhsa.html

The First Home Savings Account (FHSA) is available to open at CIBC. Learn how this new plan can help Canadians save for their first home, tax-free.

ATB Financial

First Home Savings Account

Like an RRSP or TFSA, contributions made to a FHSA are tax-deductible; and withdrawals from your FHSA are tax-free when applied to a first home purchase.

Not only banks but also investment companies are active.

You can quickly sign up for FHSA and enjoy the benefits of tax savings, investment, and purchasing a home at the same time.