🏡 Exciting news!
Introducing the First Home Savings Accounts by IA Financial. Whether you're eyeing that first home or cheering someone who is, here's your golden ticket to kickstart the journey.
Even if you can't pitch in this year, initiating your account now paves the way for 2023's contribution room. Think ahead—no immediate contribution is needed, but securing that room for the future is a smart move.
Ready to dive in? Schedule your ProsperWise FHSA Opening appointment today and embark on your homeownership adventure! 🚀
What is an FHSA?
An FHSA is a tax-free savings account designed to help future homeowners save for the purchase of a qualifying first home in Canada.
Combining the advantages of an RRSP and a TFSA, the FHSA gives you a deduction that reduces your annual taxable income and allows you to generate tax-free returns. You can then use the accumulated funds to finance the purchase of a first home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn from the FHSA.
Eligibility criteria • Must be a Canadian resident. • Must be of legal age in your province of residence. • Must be under 71 years of age as of December 31 of the current year. • Must not have lived in a qualifying home in Canada that you or your spouse owned during the part of the calendar year preceding the opening of the FHSA or during the preceding four calendar years.
Contribution deadline The FHSA contribution deadline is December 31 of each year. Unlike with the RRSP, you cannot contribute to your FHSA until the following March 1.
Contribution room You can contribute up to $8,000 per year to your FHSA, for a maximum of $40,000 during your lifetime.
You can also carry forward up to $8,000 of unused contribution room from one year to the next, for a maximum annual contribution of $16,000.