Tax Free First Home Savings Account - Flash Briefing April 1st 2023

Hello…this is Bo Kauffmann of Remax in Winnipeg, with your real estate news for… Saturday, April 1st, 2023…

Today is April Fools Day, National Sourdough Bread Day (No foolin)

As of today, Canadians are supposed to be able to start contributing to a Tax-Free First Home Savings Account. Here is how that works:

Canadian Citizens who are at least 18 yrs old, and no older than 71, open up an FHSA and start contributing money into it.

The yearly limit is $8,000 with a lifetime limit of $40,000.

Just like an RRSP, contributions are deductible from your income tax, so this makes a great tax-avoidance option.

Unlike RRSP’s, when you pull the money out to buy your first home, you do NOT have to replace that money into the account later.

Definition of first time home buyers are those who have not owned a home, in which they live, for the past 5 years.

Started this briefing by saying that Canadians are ‘supposed to be able to start using this vehicle’ but it would appear that financial institutions are not yet ready for this. Check with your investment professional or financial institution now.

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