First Home Savings Account

First Home Savings Accounts now available at Sunrise Credit Union

Save for your first home, tax-free.

The First Home Savings Account is coming to Sunrise Credit Union in 2023. Here's what we know about this exciting new registered account that can help you achieve your home ownership goals. What is an FHSA? The FHSA is a registered plan designed to help individuals save for the purchase of their first home on a tax-free basis. The FHSA combines some of the features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). Like an RRSP, contributions will generally be tax-deductible. Like a tax-free savings account (TFSA), withdrawals to purchase a qualifying home will be non-taxable.

What are some reasons to Invest in an FHSA?

  • Get tax benefits. Your FHSA contributions can reduce your taxable income.
  • Grow your savings tax-free. Any investment income in your FHSA is non-taxable while it's in your account.
  • Save for your first home, tax-free. Pay no taxes on your withdrawals when you use your FHSA towards the purchase of a qualifying home.

Who is eligible to open an FHSA?

  • Any Canadian resident that has reached the age of majority in your province or territory (18- years of age in Manitoba)
  • You're an eligible first-time homebuyer who has yet to live in a home you, your spouse, or your common-law partner has owned in the current or past four calendar years.

How do Contributions and Deductions work?

  • The cap on annual contributions is $8,000 annually up to a $40,000 lifetime contribution limit.
  • Contribute tax-free for up to 15 years.
  • Individuals may claim an income tax deduction for FHSA contributions made in the calendar year or a previous year to the extent not previously deducted.
  • Pay no taxes on any investment earnings.
  • Carry forward a maximum of $8,000 in unused contribution room to the following year.

How can I withdraw my FHSA savings tax-free?

  • You're a Canadian resident and a first-time homebuyer at the withdrawal time.
  • You have an agreement to buy or build a qualifying home.
  • You intend to occupy the home as your principal residence within one year of acquiring the home.

Make the most of your FHSA by contributing regularly and growing your savings. Here's an overview of the rules for contributing and withdrawing funds from your FHSA, as outlined by the Government of Canada.