FHSA EXPLAINED: Saving For Your First Home in Canada with the First Home Savings Account

The Tax-Free First Home Savings Account (FHSA) is a new account for Canadian first time homebuyers. In addition to the RRSP Home Buyers Plan (HBP), both accounts can provide at least $75,000 of tax free room (and $150,000 for couples) to save for a downpayment! This video gives an overview of everything you need to know about the FHSA to start saving for your first home.

𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
0:00 - Intro
1:04 - How does the FHSA work?
2:55 - Opening & Investing in the FHSA
5:01 - FHSA vs RRSP Home Buyers Plan (HBP)
6:07 - Closing the FHSA

6:32 - CLARIFICATION: FHSA funds transferred to RRSP doesn't use up the contribution limit. But if you don't transfer the funds over before Dec 31 of the year following your qualifying withdrawal then it would have to be withdrawn on a taxable basis.

𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
1. Government of Canada FHSA Backgrounder: https://www.canada.ca/en/department-f...
2. Bill C-32 Tax Update to FHSA: https://www.investmentexecutive.com/n...

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