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Will Canada’s new First Home Savings Account help you become a homeowner?
July 24, 2023 | Posted by: Angela Robinson
This year the government has introduced the First Home Savings Account (FHSA), a fantastic opportunity for prospective first-time home buyers!
The FHSA, which began on Apr. 1, is a special savings plan that allows you to save for your first home without worrying about taxes! With the ever-increasing housing prices, saving for a down payment has become a significant challenge, especially for young people. But now, the government aims to assist Canadians in achieving their homeownership dreams.
Here's how it works:
- You can save up to $40,000 in the FHSA.
- Contributions to the account are tax-deductible, similar to a Tax-Free Savings Account (TFSA).
- Most importantly, withdrawals for purchasing your first home are usually non-taxable! 'Tax-free in, tax-free out!' as the budget says.
However, there are some guidelines to keep in mind:
- You must qualify for withdrawals, and certain conditions apply.
- You should not have acquired the qualifying home more than 30 days before making the withdrawal.
- You must have a written agreement to buy or build with a completion date before Oct. 1 of the year after the withdrawal.
The maximum annual contribution to the account is $8,000, but don't worry if you can't contribute the full amount. You can carry forward any unused portions of the annual contribution to future years! So, your savings can grow even more over time!
To be eligible for the FHSA, you must be 18 years or older, a resident of Canada, and a first-time home buyer.
This is an incredible opportunity to take a step closer to owning your dream home! Don't miss out on this chance to save for your future. Contact us today or visit the government's website to learn more and open your FHSA!
Government FHSA Page: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
#FirstHomeSavingsAccount #HomeBuyers #CanadianRealEstate #FinancialOpportunity
