First Home Savings Account

Made available by the Federal Government in 2023, a First Home Savings Account (FHSA) is a registered plan product meant to help first-time home buyers save up to $40,000 for the purchase of a home.

Who Qualifies?

• You must be a resident of Canada.

• You must be at least 19 years old, which is the age of majority in Nova Scotia.

• You also need to be a first-time home buyer. This means that you (or your spouse or common-law partner) have not owned a qualifying home, or lived in one as a principal residence, at any time in the five calendar years leading up to opening the FHSA.

Key Features:

• Individuals can contribute to a maximum of $8,000 per year.

• FHSA contributions are tax-free up to $40,000.

• Income earned in the FHSA is also tax-free.

• Contributions to a FHSA reduce taxable income.

• Possibility to participate in the RRSP – Home Buyers Plan (HBP) and FHSA concurrently to purchase a qualifying home, as defined by CRA.

• A tax-free transfer of funds from RRSP to a FHSA is permitted, subject to limits.