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Insurance with Ram|416.990.6363

  • Home
  • About Us
  • Life Insurance
    • Term Life Insurance
    • Whole Life Insurance
    • Universal Life Insurance
  • Travel Insurance
    • Super Visa Insurance
    • Visitor to Canada Ins.
  • Living Benefits
    • Critical Illness Ins.
  • Savings
    • RESP
    • TFSA
    • RRSP
    • FHSA
  • Contact

First Home Savings Account (FHSA)

What is FHSA?

The FHSA is a tax-advantaged account that allows Canadians to save for their first home. It combines the benefits of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA) by offering tax deductions on contributions and tax-free growth on investments.

Key Features of FHSA

Tax-Free Growth

Any interest, dividends, or capital gains earned within the account are tax-free.

Tax-Deductible Contributions

Contributions to the FHSA are tax-deductible, meaning you can reduce your taxable income for the year you contribute.

Lifetime Limit

You can contribute up to a lifetime limit of $40,000, with an annual contribution limit of $8,000.

Flexible Withdrawals

You can withdraw from your FHSA tax-free when using the funds to purchase your first home. Unused funds can also be transferred to an RRSP or RRIF if you’re unable to buy a home.

How an FHSA Works?

Contribute

You can contribute up to $8,000 per year, with a lifetime maximum of $40,000.

Grow Your Savings

The money in your FHSA can be invested in a variety of ways, such as stocks, bonds, or mutual funds, growing tax-free over time.

Withdraw

When you’re ready to purchase your first home, you can withdraw your savings tax-free, provided the funds are used to buy a qualifying home.

Why Choose FHSA?

Tax Efficiency

First-Time Homebuyer Support

First-Time Homebuyer Support

With tax-deductible contributions and tax-free growth, an FHSA offers substantial savings benefits.

First-Time Homebuyer Support

First-Time Homebuyer Support

First-Time Homebuyer Support

If you’re saving for your first home, an FHSA is a powerful tool to help you reach your goal faster.

Flexibility

First-Time Homebuyer Support

Flexibility

You’re not locked into buying a home within a certain timeframe. If you don’t buy a home, you can transfer the funds into your RRSP without penalties.

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Shreeram Bhimsariya - Insurance with Ram

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