Rocky Credit Union - Ownership, Community, Innovation

How does a First Home Savings Account work?

Canadian residents aged 18 - 71 who do not own their home currently, and have not owned their own home in the past four calendar years, are eligible to open a FHSA. 
Income and capital gains earned in an FHSA are not taxable and can grow on a tax-free basis. There are no taxes owed on qualifying withdrawals. 
There is an annual contribution limit of $8000/year, with a lifetime contribution limit of $40,000. Contributions are tax-deductible.
You can hold your FHSA for a maximum of 15 years.
 
Ready to open an FHSA?

Call to book an appointment with Wealth Services

What can go in a FHSA?

Guaranteed Investment Certificates (GICs)

What is a qualifying withdrawal?

The home must be located in Canada.
You must have a written agreement in place to buy or build by October 1st of the year after withdrawing.
You must intend to live in the home as your principal residence within a year of buying or building.
You must be a Canadian resident from the time of withdrawal to the acquisition of the home, and a first-time home buyer when you withdraw.

What if I don't use my FHSA?

Unused funds in your FHSA can be transferred to an RRSP or RRIF on a tax-free basis before the FHSA closure.
Any unused funds not transferred before closure would have to be withdrawn on a taxable basis.

RRSP Home Buyers' Plan

Contributions: deductible
Investment growth: tax-deferred
Withdrawals: tax-deferred

Tax Free Savings Account

Contributions: not deductible
Investment growth: tax-free
Withdrawals: tax-free

First Home Savings Account

Contributions: deductible
Investment growth: tax-free
Withdrawals: tax-free