As the year-end approaches, I want to bring a crucial opportunity to your attention, especially if you or a loved one is a first-time home buyer or planning to be one in the near future. The First Home Savings Account (FHSA) is a game-changer, and there's a vital deadline to be aware of!
The FHSA launched in 2023, offering a powerful new way to save for your first home. It combines the tax-deductible benefits of an RRSP with the tax-free withdrawals of a TFSA, making it an incredibly attractive tool.
Why the rush? Your 2025 Contribution Room is at Stake!
It is free to open an FHSA and does not require an immediate contribution, but to secure your $8,000 contribution room for the 2025 calendar year, you must open your FHSA before December 31, 2025. If you don't open the account this year, you lose that $8,000 of potential contribution room forever. This room does not carry over if the account is not initiated.
Once opened, you can contribute up to $8,000 annually, with a lifetime maximum of $40,000. Unused annual contribution room will carry forward to future years, allowing you to maximize your savings power.
Who is Eligible?
The FHSA is designed for individuals who meet these criteria:
Take Action Today!
If you meet the eligibility criteria, I highly recommend speaking with your financial institution or a trusted financial advisor immediately to open your FHSA before the December 31st deadline. Don't leave your 2025 contribution room on the table!
As always, I'm here to answer any questions you have about the real estate market or connect you with trusted financial professionals who can provide personalized advice.
- Sean Lawson Personal Real Estate Corporation
The FHSA launched in 2023, offering a powerful new way to save for your first home. It combines the tax-deductible benefits of an RRSP with the tax-free withdrawals of a TFSA, making it an incredibly attractive tool.
Why the rush? Your 2025 Contribution Room is at Stake!
It is free to open an FHSA and does not require an immediate contribution, but to secure your $8,000 contribution room for the 2025 calendar year, you must open your FHSA before December 31, 2025. If you don't open the account this year, you lose that $8,000 of potential contribution room forever. This room does not carry over if the account is not initiated.
Once opened, you can contribute up to $8,000 annually, with a lifetime maximum of $40,000. Unused annual contribution room will carry forward to future years, allowing you to maximize your savings power.
Who is Eligible?
The FHSA is designed for individuals who meet these criteria:
- You must be a Canadian resident.
- You must be at least 19 years old
- You must be considered a "first-time home buyer," meaning you have not lived in a home (that you owned or co-owned) as your principal place of residence in the current calendar year or in the preceding four calendar years.
Take Action Today!
If you meet the eligibility criteria, I highly recommend speaking with your financial institution or a trusted financial advisor immediately to open your FHSA before the December 31st deadline. Don't leave your 2025 contribution room on the table!
As always, I'm here to answer any questions you have about the real estate market or connect you with trusted financial professionals who can provide personalized advice.
- Sean Lawson Personal Real Estate Corporation
