As of Monday June 12th, the First-time Homebuyer Savings Account (FHSA) will be available to all Canadians between that ages of 18 to 71 who have not owned a home in the last four years. Through this type of new registered account, you will be able to contribute up to $8000 per year up to a lifetime limit of $40,000.
Tax slips will be issued for contributions in order to reduce your annual income, much like an RRSP, but unlike the existing RRSP Home Buyer Plan (HBP), withdrawals for buying a qualifying home do not have to be repaid. The plan can stay open for up to fifteen (15) years where it will grow tax-sheltered all the while. Withdrawals used to purchase a home are completely tax-free. After fifteen years if the account is not used to buy a home, it can be rolled directly into your RRSP without penalty.
For more information and to open an account, please get in touch with your Pittaro Financial Services Inc. advisor at 514-369-6084.