Great news for prospective first-time home buyers.
The first home savings account (FHSA) is a registered plan that is targeted specifically to save towards purchasing a first home purchase. This plan will enable eligible first-time homebuyers to save up to $40,000 tax free, with a limit of up to $8,000 annually. Any contributions made towards FHSA are tax deductible and unutilized contributions are carried forward to a subsequent year.
For a withdrawal to be tax-free:
- must be a first-time homebuyer.
- have a written accepted offer to purchase before October 1 of the following year.
- the home will be occupied as a primary residence, within one year of purchasing the home.
Any remaining savings, upon making a qualifying withdrawal are transferable to RRSP or RRIF and will remain tax free.
Eligibility requirements: the individual must be a Canadian resident, at least 18 years of age & must be a first-time homebuyer.
More information on FHSA can be found at the Ministry of Finance and INVIS MI blog.
If you are a prospective first-time homebuyer and would like to find out if FHSA will help you boost your downpayment, contact the team at Mimortgage.ca at 1.866.452.1100.
https://www.youtube.com/watch?v=WWbQITHghMg
