Everything you need to know about the First Home Savings Account (FHSA)

Who is eligible to open an FHSA?

You are 18 Years of age or older (Age 19 if you live in British Columbia, New Brunswick, Northwest Territories, NS, Nunavut and the Yukon)
You are 71 years or younger as of December 31 of the year you open your FHSA
You are a resident of Canada
You meet the conditions of qualifying as a first-time home buyer

How much can you contribute?

$8,000 in the year you open your first FHSA
$8,000 per year afterwards with a lifetime maximum of $40,000
You can carry forward up to a maximum of $8,000 of unused FHSA participation room at the end of the year to use in the following year

What if I overcontribute?

Tax Deductions for FHSA contributions

Unlike an RRSP, the contribution period is based on a calendar year (January-December).

You cannot deduct the following contributions on your income tax and benefit return for the previous year.

The contributions that you make will be deductible from your income tax and benefit return for the year of the contribution or a future year.
Over your lifetime, the maximum deduction amount is $40,000
Your FHSA deduction can be carried forward even beyond the closure of the FHSA.

Transferring from an RRSP to an FHSA

Other Ineligible Deductions

Any investment losses incurred within your FHSA cannot be claimed as a deduction on your income tax and benefit return
Administration services cannot be claimed as a deduction
Brokerage fees for trades cannot be claimed as a deduction
Interest paid on money borrowed to fund contributions cannot be claimed as a deduction

Closing your FHSA

Your participation period begins when you open your first FHSA and ends on December 31 of the year in which the earliest occur.

If you have any further questions or would like to set up an account, please feel free to reach out and we will be able to help.

Matthew Gomes, CFP, CIM

Financial Planner