FHSA Explained: Everything Beginners Need to Know About the First Home Savings Account (2024)

The First Home Savings Account (FHSA) was introduced in April 2023, quickly becoming popular among Canadians, with over 300,000 accounts opened by the end of the year. This new savings account offers significant benefits but is still relatively unknown to many.

In this video, we break down everything you need to know about the FHSA:

What is the FHSA?: Understand its purpose and how it can help you save for your first home.
Tax Benefits: Discover the three key tax advantages of the FHSA, including tax-deductible contributions, tax-free growth, and tax-free withdrawals.
Eligibility: Find out who can open an FHSA and what qualifies you as a first-time homebuyer.
Contribution Limits: Learn about the annual and lifetime contribution limits, and how unused amounts can be carried forward.
Investment Options: Explore the types of investments you can hold in an FHSA, such as mutual funds, stocks, and GICs.
Withdrawal Rules: Get the details on how and when you can withdraw funds from your FHSA to buy your first home.
Closing Your FHSA: Understand the conditions under which you must close your FHSA and transfer funds.
FHSA vs. Home Buyers’ Plan: Compare the FHSA with the Home Buyers’ Plan (HBP) to see which might be right for you.

Join us to learn how the FHSA can make saving for your first home easier and more tax-efficient. Don’t forget to like, comment, and subscribe for more financial tips and updates!

Resources:
LinkedIn Newsletter Article: https://www.linkedin.com/pulse/what-f...
Link to FHSA Form R725:
https://www.canada.ca/en/revenue-agen...
Link to FHSA on CRA website:
https://www.canada.ca/en/revenue-agen...
Link to Home Buyers' Plan:
https://www.canada.ca/en/revenue-agen...

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