Tax-Free Home Savings Account FAQ

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How does the Tax-Free Home Savings Account work?

The Tax-Free Home Savings Account (FHSA) is a type of savings account that allows Canadians to save money for a down payment on their first home or to pay for home renovations. Contributions to the FHSA may be deductible on your income tax return for the year of the contribution or a future year, and capital gains are tax-free.

What are the rules for the Tax-Free Home Savings Account?

The FHSA has a few rules that Canadians need to follow:

  • Only first-time homebuyers are eligible to open a FHSA.
  • The account holder must be a Canadian resident.
  • The account holder must be at least 18 years old.
  • FHSA contributions are capped at $8,000 per year. Unused contributions can be rolled over to the following year.
  • The lifetime maximum contribution limit is $40,000.
  • An FHSA account has a 15-year lifespan. After the 15 years have elapsed, you must transfer your funds to an RRSP or RRIF.
  • Qualifying withdrawals must be used to buy or build a qualifying home. Non-qualifying withdrawals can still be made for other purposes but will be subject to income tax.

What age do you have to be to open a Tax-Free Home Savings Account in Ottawa?

The minimum age to open a FHSA in Ottawa is 18 years old. This is the same as the minimum age to open an FHSA anywhere in Canada.

When will the first Tax-Free Home Savings Account start?

The FHSA program began on April 1, 2023, meaning that you can open up an account today!

How can I get a Tax-Free Home Savings Account in 2023?

To get a FHSA in 2023, you will need to open an account with a financial institution that offers this type of account. You can check with your bank or credit union to see if they offer a FHSA. 

Is there a 90-day rule for FHSA?

There is no minimum holding period for any deposits to your FHSA.

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David Robertson

Since 2011, Dave brings integrity and professionalism to his clients in Ottawa when helping them buy and sell real estate. Every client matters to Dave.He doesn’t just sell you a home; he builds relationships for life by treating every client with the respect and honesty he would give his own family. Even after the sale of your home, he will continue to be there to answer all your real estate questions and recommend preferred vendors. As an Ottawa native, Dave understands the changes in the local market. Dave's previous industries in banking and home equity have sharpened his expertise in real estate trends. He will professionally explain the real estate process and paperwork involved. As team leader of LIFE Real Estate Group, Dave offers his clients a team of dedicated agents and administrators. Why hire a single realtor when you can hire a team? LIFE Real Estate Group's innovative marketing strategy and commitment to excellence has propelled them to be one of the top teams at Solid Rock Realty! Dave's passion for serving people is the foundation of his success. His goal is to earn the right to be your real estate professional for life. Whether it is creating a customized plan for creating generational wealth through real estate or even home maintenance tips, he is available for all his clients. Message Dave for past testimonials to see how he has helped local families.

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