Dear MoneyReady App users,
The Tax-Free First Home Savings Account (FHSA) is a new type of registered account to help individuals save for their first home.
In a nutshell, you can open one if you haven't owned a home in the last 4 years. Deposits are tax-deductible, and withdrawals are not taxed if used to buy a home but taxed otherwise. They must be closed within 15 years of opening.
They were introduced in the April 2022 federal budget but won't be available until sometime in 2023.
We make them available now for planning with the TIME MACHINE.
Because of their tax benefits and flexibility of transfers to/from RRSPs, they do present planning opportunities whether or not you are planning a home purchase.
If you are planning to buy a first home, the FHSA offers several advantages over the Home Buyer's plan (which the MoneyReady App also considers) due to its flexibility, but there are some caveats.
Lots more details on the FHSA and how you can use it in the MoneyReady App eBook, so make sure to download the latest version.
Your questions and feedback are always welcome.
Elisabeth Tillier, Ph.D.
Head of MoneyReady