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Rosalie Gingras

Rosalie Gingras

Mortgage Broker

Language(s):
French
English

rgingras@planipret.com
(514) 627-7633

425 avenue Mathers , 102
Saint-Eustache, QC
J7P 4C1

The FHSA: A Powerful Tool for First-Time Home Buyers

The First Home Savings Account (FHSA) is a tax-advantaged savings plan for future homeowners. It combines the benefits of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA), allowing you to accumulate funds for the purchase of your first home while enjoying tax reductions.
 
Benefits of the FHSA
  • Tax Deductions: Contributions to the FHSA are tax-deductible, reducing your taxable income.
  • Tax-Free Growth: Funds invested in the FHSA grow tax-free.
  • Tax-Free Withdrawals: Withdrawals made for the purchase of an eligible first home are not taxable.

Concrete Example
Let's take the example of Rose, a 30-year-old resident of Quebec, who wants to buy her first home. Rose has an annual salary of $60,000 and decides to contribute the maximum annual amount of $8,000 to her FHSA.
 
Year 1
  • Contribution: $8,000
  • Tax Reduction: $2,000 (assuming a marginal tax rate of 25%)
  • Amount accumulated in the FHSA (with an annual return of 5%): $8,400
Year 2
  • Contribution: $8,000
  • Tax Reduction: $2,000
  • Amount accumulated in the FHSA: $17,220
Year 3
  • Contribution: $8,000
  • Tax Reduction: $2,000
  • Amount accumulated in the FHSA: $26,481
After five years, Rose will have contributed $40,000 and accumulated approximately $46,415 in her FHSA, while benefiting from total tax reductions of $10,000.
 
The FHSA is an excellent tool for first-time home buyers, offering significant tax advantages and allowing you to build a down payment more quickly. If you are considering buying your first home, the FHSA could be a serious option to consider.

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RATES OF

2025-03-13 00:00:00

TERMS BANKS MORTGAGE PLANNERS
6 months Fixed 7.84% 7.50%
1 Year Fixed 7.74% 5.69%
2 Years Fixed 7.34% 4.09%
3 Years Fixed 6.94% 3.99%
3 year closed Variable 6.35% 5.20%
4 Years Fixed 6.74% 4.09%
5 Years Fixed 6.79% 4.09%
5 years Variable 51.00% 4.05%
Refinance Fixed or variable 8.15% 4.24%
7 Years Fixed 7.10% 4.44%
10 Years Fixed 7.25% 5.04%
HELOC 5.95% 5.45%

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