The First Home Savings Account might be the best deal in Canadian personal finance, and most people still haven't opened one. Here's the short version: Contribute up to $8,000/year ($40,000 lifetime) and it's tax deductible like an RRSP It's not just a savings account. You can invest inside it (stocks, ETFs, GICs) and all the growth is tax free too Withdraw everything tax free when you buy your first home,...
The First Home Savings Account might be the best deal in Canadian personal finance, and most people still haven't opened one.
Here's the short version:
Contribute up to $8,000/year ($40,000 lifetime) and it's tax deductible like an RRSP
It's not just a savings account. You can invest inside it (stocks, ETFs, GICs) and all the growth is tax free too
Withdraw everything tax free when you buy your first home, like a TFSA
Never buy a home? After 15 years it rolls into your RRSP tax free WITHOUT using up your RRSP room
To open one you need to be a Canadian resident, at least 18 years old, and not have owned a home you lived in this year or the past four years.
The 15 year clock only starts when you open the account. So open it now, even with a small deposit, and keep your options open.
