Your home ownership dreams may be closer than you think!
A new way to save for your first home
The Tax-Free First Home Savings Account (FHSA) helps Canadians afford their first home by combining the benefits of the Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Contributions of up to $8,000 a year are tax-deductible and withdrawals towards your first home purchase would be non-taxable like a TFSA.
Why should you invest in an FHSA?
- Save up to $40,000 towards your first home. That would cover the down-payment of a high-ratio mortgage on most homes.
- Get tax benefits now and later. You won't pay taxes on your investment earnings and it can help lower your annual tax bill.
- Your contribution room carries forward. So, you won't lose out as your income grows and you can contribute for up to 15 years tax-free.
- You can combine it with your partner's FHSA. If you both open FHSA accounts, you can both withdraw funds and increase your purchasing power.
Want to learn more?
Interested in an FHSA?
Want to be one of the first to take advantage of a Tax-Free First Home Savings Account? Contact one of our trusted professionals:
Samantha Jenkins
Senior Financial Services Officer
Tel: (902) 739-4006
Email: sjenkins@morell.creditu.net
Spencer Compton
Financial Services Officer
Tel: (902) 739-4011
Email: scompton@morell.creditu.net
For more information, visit the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
