Thinking about buying your first home but need help figuring out the best way to save? In this episode, I’m breaking down the First Home Savings Account (FHSA) and how it can help you reach your homeownership goals.
I’ll explain its features, eligibility criteria, and how it stacks up against RRSPs and TFSAs. Plus, I’ll give you strategies to maximize your savings, highlight the tax benefits, and discuss what to do if you decide not to buy a home.
Don’t miss out on this comprehensive guide to maximizing your FHSA.
00:00:00) Overview of the podcast episode discussing the First Home Savings Account for first-time homebuyers in Canada.
(00:01:03) Explanation of the FSA as a registered investment account and its unique benefits.
(00:02:00) FSA combines features of RRSP and TFSA, providing tax savings and tax-free withdrawals for home purchases.
(00:03:54) Criteria for being eligible to open an FSA, include age, residency, and first-time homebuyer status.
(00:04:44) Details on the maximum yearly and lifetime contributions to an FSA, linked to average home prices in Canada.
(00:05:40) Strategies for couples to maximize contributions and options for supplementing FSA with RRSP's Home Buyers Plan.
(00:06:39) Key differences between FSA and the Home Buyers Plan, including repayment requirements and withdrawal limits.
(00:07:40) Advice for high-income earners on combining FSA and RRSP for tax efficiency.
(00:08:39) Explanation of how unused contribution room can be carried forward in FSA, similar to TFSA and RRSP.
(00:09:40) Options available if you decide not to purchase a home, including tax implications and transfer options to RRSP.
Links and Resources:
Compare Canadian High Interest Savings Accountfor your savings
First Home Savings Account (FHSA) Guidelines for Canadians
Book a free financial review and open your FHSA
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