How could a First Home Savings Account (FHSA) help my first-home plan?

An FHSA has an annual contribution limit and a lifetime contribution limit. Your available room can also include a limited amount of unused room carried forward after you have opened an account.

Eligible FHSA contributions are generally deductible from taxable income, so the tax saving depends on the contribution claimed and your marginal tax rate. As with an RRSP, the deduction’s value can differ substantially between income levels and provinces.

Unused FHSA participation room can carry forward, but only up to the permitted carry-forward amount and only after an FHSA has been opened. Simply being eligible without opening an account does not start accumulating room indefinitely.

Qualifying withdrawals used for an eligible first-home purchase can be tax-free and do not need to be repaid. Non-qualifying withdrawals are generally taxable unless transferred under permitted rules to another registered plan.

Yes, if you meet the FHSA eligibility rules. The FHSA is a separate registered account with its own contribution room, and many first-time buyers use it alongside an RRSP and TFSA.