Friendly Reminder! First Home Savings Account (FHSA)
Don’t forget to open up a First Home Savings Account (FHSA) before the end of the year! Contribution room for this account does not start until the account is opened! So if, you a friend, or family member are a prospective first time buyer, you should simply open the account before year end to get that contribution room carrying forward ($8,000). If you are thinking of buying in the near future, it may be an idea to contribute before year end so you can have the amount as a tax deduction for your 2024 tax filing.
Here is a 90 second overview of this account we made – Click Here
Here is a link to the FHSA account details – Click Here
This account is not like the TFSA, which you gain the contribution room from the age of 18 no matter when you open it. So even if home ownership is a longer term goal, you should at least open the account to start to build the contribution room so you can have it as an option and can gain the maximum potential benefit. The lifetime limit of this account is $40,000, so it will take 5 years of having this account open to gain the full benefit.
If you have any questions about this, don’t hesitate to reach out, but it is always prudent to talk to your financial advisor, accountant, & lawyer on this account and if it’s a good option for you.
604-340-8588
jeff@donohoe.ca