FHSA now available at National Bank

The Tax-Free First Home Savings Account (FHSA) is now being offered at National Bank.

To open your FHSA this year, you can make an appointment at FHSA | National Bank (nbc.ca)

Highlights:

• What is it? It’s a tax-free savings account for the upcoming purchase of your first home.
• Who can access it? Are you a resident of Canada between 18 and 71 years old? Do you qualify as a “first-time home buyer”? You may be eligible. Other criteria available here.
• What are the benefits? You pay less tax while saving.
  • Contributions are tax-deductible
  • Withdrawals to purchase a first home are also non-taxable
  • Returns on investments are tax-free  
  • You can make your down payment using funds from both your FHSA, and RRSP using your Home Buyer’s Plan (HBP)
  • Unlike the HBP, the funds don’t need to be repaid and there is no withdrawal limit
• How much can you save? You can contribute up to $8,000 a year, which can be carried forward if you don’t contribute the full amount (a maximum of $8,000 in contributions can be carried forward to the following year). Your contribution room starts accumulating as soon as you open your account, up to a lifetime $40,000 limit.
• If after 15 years, you no longer plan to purchase a property, you can transfer the amounts to your RRSP without affecting your RRSP contribution room.