Attention, First-time Home Buyers! Have you saved up for the downpayment of your future home? If you haven't yet, let me share something with you.
The Government of Canada has introduced a new vehicle to make home ownership more accessible to Canadians. Introducing the First Home Savings Account?
What is the First Home Savings Account or FHSA? Who are eligible to open this account? How does it work and what makes this account special?
An FHSA is a tax-advantaged account designed to help Canadians save up for a downpayment for the purchase of their first home. Your contributions to the FHSA are Tax deductible when you file your taxes – meaning, the amount you will contribute to this account reduces your net taxable income, which in turn results to tax savings! Want more good news? Qualifying withdrawals from FHSA (including investment returns) are tax-free! Qualifying withdrawal means the withdrawal must be used for a 1st home purchase.
So you see, FHSA combines the amazing powers of an RRSP and TFSA. It takes the best features of these 2 accounts to give a new and better way to save money for your first home.
You can contribute up to $8,000 per year once opened, up to a lifetime of $40,000. That is on a per person basis. To sweeten the deal, any unused contributions can be carried forward to the next year.
If you are between 18-71 years of age, is a current tax resident of Canada and have not lived in a home that you or your spouse or partner- owned in the current year of any of the previous 4 calendar years and is opening the account to save for buying a home in Canada, better contact your bank to arrange for an account opening!
If you have questions or would like to discuss how you can start with the home-buying process, feel free to reach out to me at 431.335.4285 or send me an email at info@scarletcirio.com. I would love to help you reach your real estate goals!
Scarlet Cirio, Your Winnipeg REALTOR®
431.335.4285 | info@scarletcirio.com
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