The First Home Savings Plan (FHSA) is a new registered plan that can help you save for your first home tax-free. If you’re at least 18 (and no less than the age of majority in your province), have a Social Insurance Number (SIN) and have not owned a home where you lived this year or at any time in the preceding four calendar years, you may be eligible to open an FHSA.
The FHSA combines the best features of a registered retirement savings plan (RRSP) and a tax-free 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.
Permitted contributions are up to $8,000 per year, for a maximum total of $40,000.
To learn about the details, please see our Tax-free first home savings (FHSA) article from our RBC Family Office Services team and click play above to view the 2-min video explainer.
Let us know if you’d like to discuss if this account is right for you or a family member.
