Take advantage of the new First Home Savings Account

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:

• The Empowered Investor | Episode 56: Tax-Free First Home Savings Account (FHSA)
• Tulett, Matthews & Associates
• Keith Matthews’ Book | The Empowered Investor: A Guide to Building Better Portfolios