Get closer to home ownership with the First Home Savings Account (FHSA) for first-time buyers. Learn about eligibility, contribution limits, and tax advantages.
Are contributions tax-deductible?NoYes (up to your personal deduction limit)Yes (up to the annual and lifetime limits) Do my savings grow tax-free or tax-deferred?Tax-freeTax-deferred (added to taxable income the year you take out the money; a withholding tax ...
The First Home Savings Account (FHSA) is a type of registered savings plan introduced by the federal government in 2022. An FHSA is designed to help you save for your first home, tax-free and help you reach your vision of owning a home faster!
9. Is there a tax deduction for FHSA contributions? Eligible contributions made to an FHSA are tax-deductible, allowing you to deduct them from your taxable income and thereby reduce the amount of tax owed for the year. Contributions are considered eligible if they meet the annual contribution ...
No Yes (up to your personal deduction limit) Yes (up to the annual and lifetime limits) Do my savings grow tax-free or tax-deferred? Tax-free Tax-deferred (added to taxable income the year you take out the money; a withholding tax will also apply to early withdrawals) Tax-free if ...