FHSA

The FHSA stands for First Home Savings Account. It’s a registered savings account in Canada designed to help first-time homebuyers save for a down payment on their first home—tax-free.

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Here’s a quick breakdown:

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Key Features of FHSA:
   •    Annual contribution limit: Up to $8,000 per year
   •    Lifetime contribution limit: Up to $40,000
   •    Tax-deductible contributions (like an RRSP)
   •    Tax-free withdrawals when used to buy a qualifying first home (like a TFSA)
   •    Investment growth is tax-free

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Who qualifies?:
   •    Canadian resident
   •    18 years or older
   •    First-time homebuyer (you or your spouse haven’t owned a home in the past 4 years)

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Why it’s powerful:

It combines the best of both worlds—tax-deductible contributions and tax-free withdrawals, giving you a major advantage when saving for your first home.