Planning to Buy Your 1st Home? Get Ready for a New Tax-Free Savings Account!

The FHSA is there to help Canadians saving for their first home. Some individuals feel more secure by owning their homes. On the off chance that you have been arranging to purchase yours begin with home, tune in up!

• First-time homebuyers can withdraw up to $35,000 from their RRSP

• Withdrawals are tax-free, but need to be repaid over 15 years

• Any missed repayments count as income and the RRSP contribution room is lost permanently

The HBP sound very appealing when it comes to withdrawal funds at any time they need from their RRSP. That time portraits readiness to purchase a home. The repayment policy is fair since you only need to pay back 1/15 of what you used starting the second year when you withdrew the funds.

Within 15 years of opening account you must use those saved money towards buying a home. Otherwise, your other option would be to transfer the funds to your RRSP or RRIF.