Is the FHSA advantageous for first time buyers? Unequivocally YES!

Many first time buyers question whether the ‘FHSA’ is advantageous for them

so I have taken this opportunity to highlight certain points that will help clarify

the benefits.

• In a nutshell it allows each spouse to create his / her own FHSA and to

contribute individually up to $8,000 a year, for a total limit of $40,000.

• It is tax deductible just like an RRSP but it is totally exempt from taxes

upon withdrawing for the purchase of a first home.

• You can use the FHSA funds in the same way allowed in your RRSP. You

can use the funds towards the purchase of any type of residence, condo,

duplexes, new house, existing house etc.

• To be eligible, you must be over 18 and under 71, and have not owned

jointly or individually a house in the last 5 years.

• It is a great program because your capital and its growth are tax-free as long

as you use them to purchase a home. If you decide not to purchase, you can

transfer the funds to your RRSP, regardless of your contribution room.

• You will have to close the FHSA account after 15 years or before you reach 71.

The way I look at it, it is a great way to save for a home for qualifying

purchasers, plus you can still use your RRSP, if you need more cash for the

purchase.

Lucyne FARAND courtier immobilier 514 952-6316 / Email: lfarand@royallepage.ca