Tax-Free First-Time Home Savings Accounts (FHSA) Now Offered By VOF

VantageOne Financial (VOF) is excited to share an excellent opportunity that can help our clients, members and their families achieve the dream of owning a home – with the Tax-Free First-Time Home Savings Account (FHSA).

In 2023, the Canadian Government introduced a program to assist buyers who have not owned a home in the preceding 4 years. Key advantages of this program include:

1. Contributions: Contributions are tax free. There is an annual contribution limit of $8,000 in any year, including 2023, and a lifetime contribution limit of $40,000. This means that tax paid dollars deposited into the program get you a tax-refund just like an RSP deposit.

2. Savings Incentives: The income earned within the account remains tax-free provided it is withdrawn for the purpose of purchasing a qualifying home including the down payment, closing costs, or any other related expenses involved in the purchase of your first home.

3. Joint Account Option: If you are purchasing a home with your spouse or common-law partner, both of you can open separate FHSA’s and combine the funds for a maximum total of $80,000. Pooled resources, give you a greater advantage in achieving your goals.

4. Repayment and Withdrawal: If the funds are used to purchase a home or related costs and proper documentation completed, there are no repayment requirements.

It is important to note that the FHSA is available to individuals who meet the eligibility criteria set by the CRA, which primarily involves being a first-time homebuyer and a resident of Canada. Visit CRA for detailed information and specific guidelines related to the FHSA.

VantageOne Financial is here to guide members and clients through the process of opening and managing their FHSA. As well as assist in evaluating their financial situation, exploring suitable savings strategies, and ensuring compliance with the program’s requirements. Several different types of investments qualify under this program.