FHSA

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You can keep your FHSA until December 31 of the 15th year after it was opened or until December 31 of the year you turn 71.

If you use the funds in your FHSA to purchase a home, it will remain open until December 31 of the year following the first eligible withdrawal. For example, if you make a withdrawal in 2031, your FHSA must be closed by the end of 2032.

If you don’t use the funds in your FHSA during the participation period, you can usually transfer them to your RRIF or RRSP without affecting your unused deductions. You can also withdraw the remaining funds, which will then be taxed according to your tax bracket.

Yes, you can have more than one FHSA. However, you must ensure that your total contributions do not exceed the $40,000 lifetime limit or the $8,000 in annual contributions to which you are entitled.

Please note also that your participation period begins when you conclude your first contract. You will therefore have to close all your FHSA accounts once the participation period has elapsed.

You cannot contribute directly to your child’s, a family member’s or a friend’s FHSA since only the FHSA holder can contribute.

However, you can make a donation to your child, a family member or a friend, who can then use it to contribute to their own FHSA.

Yes. If you exceed your contribution limit, you will have to pay a penalty of 1% of the excess amount for each month there is a surplus in the account.

Please note that unlike RRSPs, you are not allowed an excess of $2,000 before you are penalized.

Yes, as with an RRSP, you can carry forward unused deductions to future years.

This could be a good strategy to consider if you expect a significant increase in your income in the years to come. For example, if you finish your studies and start your career.

If your spouse is a homeowner, you cannot open an FHSA as FHSA eligibility requires that neither you nor your spouse must have owned a home in Canada in the past four years, nor in the current year.

However, if you opened an FHSA before becoming the spouse of a homeowner, you can continue to contribute to your FHSA and use it to purchase your first home. Only the FHSA holder must meet the eligibility criteria in this context.

If you have any doubts, please don’t hesitate to consult an advisor to gain a full understanding of the details specific to your situation.

Yes. You can combine contributions with returns from your FHSA, and up to $60,000 from your RRSP, to purchase your first home in Canada.

You can use this approach to maximize your down payment on your first home. Talk to your advisor about the best strategy for you.

The FHSA is specifically designed to help you save for the purchase of your first home, whereas the TFSA is a savings vehicle that can be used for a variety of projects, including the purchase of your first home.

Please note that first-time home buyers can combine savings from their FHSA, TFSA and RRSP under the HBP.