episode: 76

Take advantage of the new First Home Savings Account

May 29, 2023

listen now

Saving for purchase of a first home

Canada’s housing affordability crisis has put the purchase of a home out of reach for many young aspiring homeowners. The government created the first home savings account (FHSA) in response.

An FHSA is a vehicle people can use to save for purchasing their first home while receiving a tax deduction on contributions. The money grows tax-free, and you can use it to buy a house without needing to refund the account; unlike the RRSP’s Home Buyers’ Plan.

Keith and Marcelo first spoke about the FHSA when it was announced in June 2022, and today they’re coming back with more answers as we head towards the account’s rollout. In this episode, Marcelo and Keith talk about what exactly an FHSA is, how it works, who benefits from using them, how it may impact the housing crisis, and so much more!

Thank you for listening!

Tax-free Home Savings

  • The purpose of the first home savings account (FHSA) (3:05)
  • Young Canadians’ attitudes toward homeownership (3:53)
  • How the FHSA works (5:38)
  • Parameters for using an FHSA (7:04)
  • The main benefit of using an FHSA (8:24)
  • How the FHSA works alongside a Home Buyers’ Plan (HBP) (9:33)
  • Implications of choosing not to buy a home (11:53)
  • The main difference between the FHSA and the HBP (13:52)
  • Primary beneficiaries of the FHSA (15:14)
  • Rising criticisms of the FSHA (17:00)
  • Advice for young investors (19:28)
  • And much more!

Mentioned in this Episode:


Meet your hosts

Keith Matthews

Keith Matthews

Partner & Portfolio Manager

Marcelo Taboada

Marcelo Taboada

Associate Portfolio Manager

Lawrence Greenberg

Lawrence Greenberg

Associate Portfolio Manager

Thanks for Listening!

Be sure to subscribe on AppleGoogleSpotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112 Follow Tulett, Matthews & Associates on social media on LinkedInFacebook, and more! Follow The Empowered Investor on FacebookLinkedIn, and Instagram

Dive Deeper: Related Episodes

Essential  Financial Strategies for Entrepreneurs
Essential Financial Strategies for Entrepreneurs

How can entrepreneurs effectively plan and accumulate wealth? Join us as we dive into key financial strategies for entrepreneurs, including optimizing tax savings, protecting assets, and setting up holding companies for legal and tax benefits.

read more
Raising Money Smart Kids is the Wisest Investment
Raising Money Smart Kids is the Wisest Investment

As parents, we all want to set our kids up for financial success. But how do you teach them about money in a way that sticks? We sit down with Robin Taub, CPA and author of “The Wisest Investment,” to get her expert advice on instilling money smarts from an early age.

read more
2024 Federal Budget: Capital Gains Inclusion Rate Impact
2024 Federal Budget: Capital Gains Inclusion Rate Impact

How will the proposed 2024 Federal Budget changes affect your investments? We explore the nuances of the proposed capital gains inclusion rate increases, highlight the direct impacts on various investment structures, and unravel strategies to optimize financial outcomes under these new regulations.

read more

Stay on top of your financial education

Subcribe and follow to get updates on important wealth management topics.