Helping the Next Generation Homeownership with an FHSA

For some of our members, buying a first home is a milestone that's already behind them. But for your children or grandchildren, that dream may feel more challenging than ever. Rising home prices and the cost of everyday living can make saving for a down payment difficult. That's where the First Home Savings Account (FHSA) can help.

The FHSA is a registered savings plan designed specifically for first-time homebuyers. It combines some of the best features of both an RRSP and a TFSA. Contributions are tax-deductible, investments grow tax-free, and qualifying withdrawals used to purchase a first home are also tax-free.

Eligible first-time homebuyers can contribute up to $8,000 per year, to a lifetime maximum of $40,000. Unused contribution room can be carried forward, helping young savers build their down payment over time.

One of the biggest advantages is flexibility. If the funds are ultimately not used to purchase a home, they can generally be transferred to an RRSP or RRIF without affecting RRSP contribution room.

As parents and grandparents, you may be looking for meaningful ways to support the next generation. Encouraging a child or grandchild to open an FHSA can help them begin building financial confidence and move closer to home ownership while benefiting from valuable tax advantages. If they have a spouse or partner, both individuals may be able to contribute to their own FHSA, providing even more savings potential for a future down payment.

If someone in your family is thinking about buying their first home, we'd be happy to help them get started. Contact us today to learn more about opening an FHSA and building a plan for homeownership.