At OCU, we understand that buying your first home is one of the most significant milestones in your life. To help you achieve this dream, we’re excited to offer the First Home Savings Account (FHSA), a powerful tool designed to make saving for your first home easier and more rewarding. Let’s dive into some common questions about this great opportunity.
What is a First Home Savings Account (FHSA)?
An FHSA is a new registered savings plan designed to help Canadians save for their first home. Contributions to your FHSA are tax-deductible, and any investment growth within the account is tax-free, providing a significant financial boost to your savings.
How much can I contribute to my FHSA?
You can contribute up to $8,000 per year to your FHSA, with a lifetime contribution limit of $40,000. These contributions are tax-deductible, which means you can reduce your taxable income while saving for your dream home.
Who is eligible for an FHSA?
To be eligible for an FHSA, you must be a Canadian resident, at least 18 years old, and a first-time homebuyer. A first-time homebuyer is someone who hasn’t owned a home in the last four years.
How do withdrawals work?
Withdrawals from your FHSA are tax-free if used for qualifying home purchases. This includes buying or building a home in Canada that will be your principal residence within one year of purchase. If you decide not to buy a home, you can transfer the funds to your RRSP or RRIF without tax consequences.
What makes the FHSA different from other savings options?
The FHSA combines the best features of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). You get the tax-deductibility of an RRSP and the tax-free growth of a TFSA, all geared towards helping you purchase your first home.
View our comparison chart here.
At Osoyoos Credit Union, we’re here to guide you every step of the way. Our personalized service ensures that your savings strategy aligns with your unique goals. Whether you’re just starting to save or are ready to make your first home purchase, we’re here to support you.
Ready to open an FHSA? Book an appointment today!