First Home Savings Account (FHSA): All You Need to Know

Saving up for your first home? Check out this easy-to-understand breakdown on how the new tax-free First Home Savings Account (FHSA) works, including how it can work in tandem with the Home Buyer's Plan (HBP) to lead to HUGE tax savings and a MASSIVE down payment for you.

Intro (0:00)
Key Facts (0:35)
Opening a FHSA (1:00)
Contribution Limits (1:10)
Transferring Money From Your RRSP (1:27)
Home Buyer's Plan vs FHSA (1:48)
Investment Options (3:17)
15-Year Time Limit (3:57)
Options If You Don't Buy a Home (4:17)

DISCLAIMER: All videos on this channel (including this one) are for educational or entertainment purposes only. They are not (and are not intended to be) financial, investment or legal advice. It is our firm position that everyone has a unique situation and should seek professional advice on how best to navigate it. Rhys Martell is a Chartered Investment Manager (CIM), a Fellow of the Canadian Securities Industry (FCSI), a Qualified Associate Financial Planner (QAFP) and more. However, he is not registered to provide investment advice and, therefore, does not provide specific investment recommendations. Those looking for specific investment advice should seek out a registered professional.

[johnwong]

Good video but I believe that you made a mistake since the contribution amount doesn't carry forward "indefinitely" like a TFSA (or RRSP). If you don't contribute/use it the first year ($8k) and you don't use it the second year (+$8k), on the third year, you CANNOT contribute $8k x 3 = $24k. With a TFSA, the contribution amount carries forward indefinitely whereby if you were eligible to have a TFSA at inception of the plan, if you had $88k right now to contribute into the plan, you can do so as of this date. Another thing about the FHSA is that if you've maxed out your RRSP contribution limit and you are eligible to have a FHSA, you can use the FHSA as an additional RRSP even if you don't any plans on purchasing a home since if you don't purchase a home with the money, you can transfer the amount from your FHSA to your RRSP without any penalties or paying any immediate taxes.

[clairegermann]

Great video - I found this very helpful. I fall into the first time home buyer for a second time category. But what’s not clear to me is the date I should use for when I was last a home owner. Would I use the closing date of when I sold the house? It was Feb 2020 that the house closed so I’ve been holding off on opening this account until 2025 because I believe the eligibility begins Jan 1st of the 4th year prior.

[katedoesnature]

Sent your video link to my kids... Hopefully it encourages them to save more. 🤞🏻🤞🏻

[ryanm]

I have two questions. One, did they get rid of the 40 age limit in order to be eligible. Second question, could someone take the the 40K after 5 years and purchase a home from their own parent and still be eligible in either of the two following situations? One could they purchase it outright for 40K, way under market value, in their own name or two, as joint tenants with right of survivorship with the same parent. Also, thanks for putting up Canadian financial planning topics on YouTube. YouTube needs more people like you.

[dw]

may you invest in the nyse just like a tfsa? or is it a strictly cash only savings acc?

[LeahWriter]

Damn I wish I were younger to take advantage of all these things longer

[davehancock]

Is it jerky of me to be jealous of this program?