If you’re a Canadian looking to save for your first home, you’ll definitely want to pay attention to this. Starting on April 1, 2023, the first home savings account will become available to eligible Canadians. In this video, we cover everything you need to know about the First Home Savings Account (FHSA), including its features, eligibility requirements, comparison to the Home Buyer’s Plan (HBP) and more.

UPDATE
I wanted to clarify that there has been revised legislation so you can now withdraw from both your FHSA and RRSP (originally the government said you couldn’t): “You can withdraw amounts from your RRSP under the Home Buyers’ Plan (HBP) and make a qualifying withdrawal from your FHSA for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal.” according to

00:00 Intro
00:20 What is a FHSA
01:40 Eligibility
02:48 What does my money do in a FHSA
03:22 Contributions
04:22 Buying your First Home (Qualifying Withdrawals)
05:50 FHSA vs. HBP (Home Buyers’ Amount)
08:07 Transfers

Sources for video:

Disclaimer: Note this video is not financial nor accounting/tax advice and should be used for educational purposes only. Please do your own research as rules may be subject to change and to consult with your own financial advisor, accountant and/or tax advisor.
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HOW TO OPEN A FHSA?
Financial institutions should have them available.
I personally like to use Questrade and use a self-directed investment account for lower fees and commission.
Questrade just released the FHSA – get *$50 cash* if you sign up using my referral code *666020718448695* and deposit $1000 within 60 days (and get the tax deduction for 2023).
Sign up here
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The Australian government has recently announced the New First Home Savings Account (FHSA) that will come into effect on April 1, 2023. As the name suggests, this account is designed to help Australians who are looking to purchase their first home, by providing a tax-effective way of saving money for a deposit.

To further understand the concept, we asked a Tax Expert to explain the FHSA.

What is an FHSA?

An FHSA is a type of savings account that provides tax benefits to first-home buyers. This new account will allow individuals to deposit up to $50,000 of their pre-tax income into a savings account that is specifically designed for saving for a first home. The account is limited to one per individual, and couples will be able to open a joint FHSA.

How does it work?

The FHSA is only available to first-home buyers who have never owned property in Australia before. Individuals who are interested in opening an FHSA will be required to open the account and deposit a minimum of $1,000 per year. Deposits will be capped at $10,000 per year, and after-tax contributions into the account will not be permitted.

The government will provide a 50% tax discount on interest earned on the FHSA, which means that savers could potentially earn a higher interest rate than regular savings accounts. The maximum amount an individual can save in an FHSA before they reach the cap is $50,000.

When can I access my savings?

If you are saving for your first home, you will be able to withdraw the money from the FHSA after four years of opening the account. While the account is designed for saving for a first home, you will still be able to continue to save in the account even after you’ve purchased your property.

What are the benefits of an FHSA?

The main benefit of an FHSA is that it offers tax benefits to first-home buyers. The 50% tax discount on interest earned on the account means that savers could potentially earn a higher interest rate than regular savings accounts. The FHSA is separate from other savings accounts, which means you won’t be dipping into this money for regular expenses.

In conclusion, the new FHSA is a great initiative by the Australian government to help first-home buyers save for their dream of owning their own home. If you are planning to purchase your first home, consider opening an FHSA and taking advantage of the tax benefits it offers. It is always recommended that you seek professional financial advice before making any major investment decisions, such as purchasing a property.