First Home Saving Account (FHSA)
The tax-free first home savings account (FHSA) is a new registered account to help individuals save up to $40,000 on a tax-free basis to purchase their first home. The FHSA is a mix between a registered retirement savings plan (RRSP) and a taxfree savings account (TFSA). Like an RRSP, contributions you make to a FHSA are tax-deductible; like a TFSA, withdrawals you make to purchase a first home (including the investment income earned) will not be taxable. This article provides a summary of key features of the FHSA. While the FHSA rules will take effect on April 1, 2023, please check with your financial institution to determine when you can open a FHSA with them. Any reference to a spouse in this article also includes a common-law partner
