FHSA Investment

DESCRIPTION

What is FHSA?

The First Home Savings Account (FHSA) is a registered plan introduced by the Canadian government to help first-time homebuyers save for their first property. It combines the best features of an RRSP and a TFSA: contributions are tax-deductible, and withdrawals for a qualifying home purchase are completely tax-free. With flexible savings options and valuable tax advantages, the FHSA is one of the most powerful tools for Canadians planning to buy their first home.

FEATURES

Why Should You Invest In FHSA?

Homeownership Support

Designed specifically to help you save for your first home.

Tax Deductible

Contributions reduce your taxable income, like RRSPs.

Tax-Free Withdrawals

Withdraw funds tax-free for a qualifying home purchase.

Generous Limits

Contribute up to $8,000 annually, with a lifetime cap of $40,000.

Carry-Forward Room

Unused contribution room can be carried forward to future years.

Transfer Options

Transfer unused FHSA funds into your RRSP or RRIF without penalty.

OVERVIEW

Contributions

Deadlines

Tax Benefits

Investments

Withdrawal

Annual contribution limit of $8,000, with a lifetime maximum of $40,000.
Unused annual room (up to $8,000) can be carried forward to the next year.
Contributions are tax-deductible, lowering your taxable income.
Must be a Canadian resident, 18 years or older, and a first-time homebuyer to open.

Contributions can be made anytime during the calendar year.
No special deadlines like RRSP’s March cutoff.
Carry-forward contribution room begins only after the account is opened.
FHSA accounts can remain open for 15 years or until the end of the year you turn 71, whichever comes first.

Contributions reduce taxable income (similar to RRSP).
Investment income inside the FHSA grows tax-free.
Withdrawals for a qualifying home purchase are tax-free.
If not used, funds can be transferred to an RRSP or RRIF without tax consequences.

Eligible investments include cash, GICs, mutual funds, ETFs, stocks, and bonds.
Choice of investments allows both conservative and growth-focused strategies.
Non-qualifying withdrawals are taxed like regular income.
Professional advice can help balance risk and timeline for a home purchase.

Withdrawals are tax-free when used for a qualifying home purchase.
To qualify, the home must be in Canada and purchased as your principal residence.
Grants and income are taxed when withdrawn, usually at the student’s lower tax rate.
Unused FHSA savings can be transferred into RRSP/RRIF tax-free.

Why Choose Value Insurance?

Customers should choose Value Insurance because we make getting the right coverage simple, affordable, and stress-free. Founded by Amit Shahi, our Canada-based team goes above and beyond to tailor insurance solutions that fit your unique needs, ensuring you never pay more than necessary. With access to a wide network of top-rated providers, we deliver the best rates and options available—without the confusing jargon or hidden fees. Our friendly experts guide you every step of the way, giving you confidence and peace of mind that your protection is secure. At Value Insurance, your satisfaction isn’t just a goal—it’s our promise.

FAQ

Questions

You must be a Canadian resident, at least 18 years old, and a first-time homebuyer (meaning you haven’t owned a home in the past four years).

You can contribute up to $8,000 per year, with a lifetime maximum of $40,000.

Unused funds can be transferred into your RRSP or RRIF without tax penalties, keeping the tax advantages.

No, if used for a qualifying home purchase, withdrawals are completely tax-free. Non-qualifying withdrawals are taxed as regular income.