The First Home Savings Account (FHSA) Category: Education and Learning, Home Purchase, The FHSA is an excellent opportunity for first time home buyers to save for a home, decrease income taxes, and save on investment growth too!When saving for a home, consider the FHSA before contributing to a TFSA or RRSP.Key Points-Must be 18 years of age and be a resident of Canada to contribute-$8,000 total yearly contribution $40,000 total lifetime contribution–Contributions are tax deducted in that year–Growth on contributions is tax free-Carry-forward contributions are allowed for 1 year (eg. $2K year 1, $14K year 2)*Carry-forward only works if you open an FHSA account. I.e., if you open an account and put in $0 in 2023, you can put in $16,000 in 2024.**You can open an FHSA account at any financial institutionWithdrawals-No tax on withdrawals if the withdrawal is for a first time home buyer’s purchase.*A first time home buyer is someone who has not lived in a home that was personally owned for the preceding 4 years. IE, this program can be used more than once.-Must withdraw in the year of the purchase, and up to 30 days after possession.-The FHSA ($40K) can be used in conjunction with the RRSP Home Buyers Plan ($35K); up to $75K + growth in the FHSA could be available to a new home buyer.Additional Points-Can transfer money to and from RRSP into/from FHSA*This is great if you don’t use your FHSA – transfer to your RRSP tax free-Can delay claiming the FHSA tax refund.*This is great for tax planning for lower/higher tax bracket years.-Any investment that qualifies for a TFSA or RRSP is also FHSA approved-No spousal contributions and contributing as an American would cause issues.To sum up, if you’re a first time home buyer, the FHSA is just like a TFSA but better!Please email me if you would like a recommendationto a financial planner to help you set up an FHSA today. Continue Reading: Read Article A 5-Year Fixed May Be a Bad Idea! Category: Education and Learning,Home Purchase, A 5-Year Fixed May Be a Bad Idea! Summary: Long-term mortgages have higher penalties than shorter term mortgages or variable mortgages, and these penalties would outweigh any benefit of refinancing to a lower rate in the future. The term you choose right now will affect much more than your interest rate. A specific mortgage term, […] Read Article Read Article 3-Year Fixed vs. 5-Year Fixed vs. 5-Year Variable Category: Education and Learning,First Time Buyer,Home Purchase,Renew Refinance, Article Summary: I would advise going with a 3-year fixed rate over the 5-year rate. I would also heavily explore the variable again while rates are as high as they are. This is going to be really cool – I love graph and charts and tables. I’m looking forward to nerding out with you 🙂 […] Read Article