Another tax free savings method for your first home purchase.

[Heckler]

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

Although I would fill TFSA before this FHSA, so your first $6500 contributed are not locked into buying only a first house.

[chasingsnow]

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

Although I would fill TFSA before this FHSA, so your first $6500 contributed are not locked into buying only a first house.

Is this a proposed new account or one that already exists?

[Experimental_FIRE]

This is interesting and may work for me, thanks!

[Lews Therin]

This account is more useful than RRSP for anyone that hasn't bought a home yet, since it seems that contributions are tax-deductible (like RRSP), and qualified withdrawals don't get taxed either.

The money can also be transfered to an RRSP tax free, so there's no downside to doing it.

Even weirder, you can give your spouse money to fill their account without it being attributed to you, so now unevenly matched couples can fill both the TFSA and the FHSA account with no attribution.

[chasingsnow]

Yeah I think this would be perfect for me and my partner. anyone have any idea when it plans to go live?

[Lews Therin]

2023 according to the backgrounder.

[buildinmastash]

Thank you for this info! Very helpful and interesting!

[JAYSLOL]

Definitely going to max this out before TFSA or RRSP if this all goes through as planned

[Missy B]

Still waiting for the big drop on this. Wondering if the the tax deduction will be the same as RRSP.

[Lews Therin]

According to the info, it will be the same. The deductions are calculated in the same manner. 1-1 on income.

[Heckler]

Anyone really keen on knowing can try to decipher Bill C32.    I'm not.

https://www.parl.ca/DocumentViewer/en/44-1/bill/C-32/royal-assent