+91-8512093920

All That You Need to Know About FHSA (A First Home Savings Account): Guide for Newcomers

Nisha Menon Nisha Menon

5 min read

Updated On

 All That You Need to Know About FHSA (A First Home Savings Account): Guide for Newcomers

Limited-time offer : Access a free 10-Day IELTS study plan curated for you

Gis Bottom

Limited-time offer : Access a free 10-Day IELTS study plan curated for you

Gis Bottom

Frequently Asked Questions

Do you Have to Repay the FHSA?

Unlike other savings plans, such as the home buyer’s plan (HBP), there is no obligation to repay funds deposited into an FHSA.

What is a Self-Directed FHSA?

A Self-Directed FHSA allows you to establish and oversee your investment portfolio, involving the buying and selling of various eligible investments.

What will happen if I don't utilize my FHSA funds?

The funds must be utilized by December 31 of the 15th year or by the year you turn 71, whichever comes first. Unused funds can be tax-freely transferred to your RRSP or RRIF, but otherwise, withdrawals are subject to taxation.

What investment options are permissible in an FHSA?

The eligible holdings for a First Home Savings Account (FHSA) include savings deposits, stocks, options, bonds, Exchange-Traded Funds (ETFs), cash, GICs, and mutual funds.

Can I carry forward the unused FHSA contribution room?

Yes, Any unused contribution room from the prior year, up to a maximum of $8,000 and subject to the lifetime limit of $40,000, can be carried forward. For instance, if you contribute $5,000 in 2023, you can contribute $11,000 in 2024 ($8,000 for the year plus the remaining $3,000 from 2023).
Nisha Menon

Nisha Menon

Sr. Content Marketing Specialist

Nisha Menon is our seasoned content writer with over 5 years of expertise in content marketing. Nisha combines her profound knowledge with skillful SEO practices to craft content that informs and engages. Beyond her writing prowess, she specializes in content related to Immigration and PR services, her commitment to continuous learning keeps her well-versed with the latest industry trends. In her leisure moments, she finds solace in creativity and embarks on travel adventures. Her unyielding commitment to seeking inspiration blends harmoniously with her love for exploring new horizons.

Related Articles