FHSA

Question 1

FHSA Contribution Limits

Answer 1

$8 000 annually (carries forward one year) or $40 000 lifetime.

Question 2

Age qualifications for FHSA

Answer 2

18-71

Question 3

What is a “First Time Home Buyer” for FHSA?

Answer 3

For the last four years you have not occupied a house that you or your spouse owned

Question 4

Tax Implications of FHSA

Answer 4

Best of RRSP and TFSA
- Contributions are tax-deductible like RRSP
-Withdrawals are tax-free like TFSA (as long as they are used for home purchase)

Question 5

Time Limit of FHSA

Answer 5

15 years after opening or year you turn 71.
(FHSA can then be withdrawn and taxed or transferred to RRSP regardless of contribution room).

Question 6

FHSA vs RRSP HBP

Answer 6

-FHSA is up to $40 000 (plus investment growth) withdrawn that doesn’t have to be paid back

-HBP is up $35 000 that must be paid back in 15 years

(You can combine these for first home purchase)

Question 7

Yearly deadline for contributions for FHSA

Answer 7

31 December

Question 8

What can you do with funds if not used for a First Time Home purchase?

Answer 8

Can be withdrawn fully taxed or transferred to RRSP regardless of contribution room.