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Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
The FHSA combines the benefits of a TFSA and RRSP specifically for first-time home buyers. Contributions are tax-deductible (like an RRSP) and qualifying withdrawals for a first home purchase are tax-free (like a TFSA). Annual contribution limit is $8,000, lifetime maximum $40,000.
You open an FHSA in 2024 and contribute $8,000. At a 40% marginal tax rate, you receive a $3,200 tax refund. You invest everything in a bond ETF like ZAG.TO or a balanced ETF. In 5 years, you withdraw the funds for your down payment — paying no tax on the growth.
Created in 2023, the FHSA is the best Canadian tax tool for first-time buyers. If you ultimately don't buy a home, you can transfer the funds to your RRSP without losing contribution room. It's a risk-free option to maximize if you ever plan to buy.