First Home Savings Account

Taniya Simpson • June 11, 2024

Getting Started with the First Home Savings Account (FHSA)

By: Taniya Simpson

The Mom in me is excited to share the news about the First Homes Savings Account...

Guess what? Today, I've got some seriously cool news to share with you, especially for all you wonderful folks stepping into the fantastic world of homeownership. And you know me, I'm always on the lookout for things that could make life a bit brighter!

Introducing... drumroll, please... the First Home Savings Account (FHSA)

So, what's the scoop on FHSA?

Picture this: it's like a mix of tax-free savings accounts and retirement plans, but tailor-made for those on the brink of their first home adventure. You can save away up to $40,000 over time, with a yearly cap on contributions that can wiggle around a bit.

Let me brag a little—my son, Dorion, just hit 21, and I couldn't be prouder of the incredible guy he's become. As a mom, I'm all about dishing out advice, and one nugget I've been tossing his way is to jump into the real estate market as soon as possible. Flashback to my days—saving every penny to make that down payment, I was able to dive into the real estate market at 21, and I've never looked back since!

Now, I get it that was a long time ago. It's a different world out there; prices have gone up, and things are a tad more complex. But fear not, I've got something exciting for Dorion, and it could help you as well as planning is everything!

**Eligibility**

All you need to open an FHSA is to:
- Call Canada home.
- Be at least 18 (high-fives to adulthood!).
- Be on the hunt for your first dream home.
- Still be under 71 when you crack open the FHSA.

Get cozy with your favourite financial institution and set up an account. Sign up, and you can throw in up to $8,000 each year. Anything left over? No worries, it rolls over to the next year. So, let's say you stash $5,000 in 2023—bam! You've got an $11,000 contribution room for 2024.

This account could be a head start for Dorion and anyone else eyeing that first home. It's like having a buddy to help you save and navigate the exciting world of homeownership.

Feel free to dive into this tidbit of info and spread the love.

Questions, thoughts, or just wanna share your own home-buying saga, feel free to reach out anytime.

Happy home-hunting!

For more info: https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html

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