FIRST TIME HOME BUYER? YOU NEED TO KNOW ABOUT THE FHSA:

The FHSA lets you deduct contributions like an RRSP — but withdraw tax-free for your first home. Read the blog post below to see how to make tax season work for you.

The "Double Tax" Advantage

Like an RRSP: Your contributions are tax-deductible. If you contribute $8,000, you can reduce your taxable income by $8,000, likely resulting in a significant tax refund.

Like a TFSA: Your investments grow tax-free, and your withdrawals (including all the growth) are tax-free, provided you use the money to buy a qualifying home.

Contribution Limits

Annual Limit: $8,000.

Lifetime Limit: $40,000.

Carry-Forward Rules: If you don't use the full $8,000 in one year, you can carry forward the unused amount to the next year, but only up to a maximum of $8,000. Example: If you open an account in 2025 and contribute $0, you can contribute $16,000 in 2026 ($8k current + $8k carry-forward).

Note: Your contribution room only starts accumulating after you open the account. Even if you have no money to save yet, opening the account today "starts the clock" on your room.

Credits and thank you to Jim Steffler for this information. If you’re looking for a great mortgage agent, consider reaching out to Jim!

Jim Steffler

Mortgage Agent Level 2

Dominion Lending Centres National Ltd.

TEL: 226-338-5136

EMAIL: jim@jimstefflermortgages.com

https://jimstefflermortgages.com