An Introduction to The FHSA.

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Unlock Your First Home Faster: Discover the Powerful Benefits of the FHSA.

Buying your first home in Calgary is an exciting milestone, but rising property prices often make saving for a down payment the biggest challenge. The good news? The First Home Savings Account (FHSA) is here to help. This registered savings account combines the tax-saving perks of an RRSP with the flexibility of a TFSA, making it one of the most powerful tools available to first-time homebuyers in Calgary & Canada.

What is the FHSA and Why is It Important for Calgary Buyers?

Introduced by the federal government in 2023, the First Home Savings Account is designed to help Canadians save more efficiently for their first home. With generous tax incentives and no repayment requirements, it’s a must-have for buyers aiming to enter Calgary’s real estate market.

Key Features of the FHSA

→ Annual Contribution Limits

  • Contribute up to $8,000 per year

  • Lifetime maximum of $40,000

→ Tax-Deductible Contributions

  • Reduces your taxable income, similar to an RRSP

  • Potential tax refund can be reinvested

→ Tax-Free Investment Growth

  • Grow your savings with no tax on interest, dividends, or capital gains

→ Tax-Free Withdrawals

  • Use the funds for a qualifying first home and no taxes will be owed when withdrawn

Comparing FHSA, TFSA, and RRSP for Calgary Homebuyers

Table comparing features of FHSA, TFSA, and RRSP (HBP), including tax-deductible contributions, tax-free growth, repayment required, and use for home purchase with check and cross marks.

The FHSA is the only account that combines tax-deductible contributions with no repayment requirements. It's the best of both worlds.

FHSA Eligibility Requirements

To open an FHSA, you must:

  • Be at least 18 years old

  • Be a resident of Canada

  • Be a first-time homebuyer (have not owned a home or lived in one owned by your spouse in the past 4 years)

Note: Even if you can't contribute right away, opening an account early helps you start accumulating contribution room.

FHSA + RRSP: A Dual Strategy for Down Payments

Did you know? You can combine your FHSA with your RRSP’s Home Buyers' Plan (HBP).

  • Up to $40,000 from FHSA

  • Up to $60,000 from HBP

That’s $100,000 in tax-advantaged funds you can use to buy your first home in Calgary.

When Should You Open an FHSA?

The moment you qualify! Unlike the TFSA, where room accumulates automatically starting at age 18, your FHSA only builds contribution room after the account is opened.

Pro Tip for Calgary Buyers: Open your FHSA now, even if you have no initial contributions, you can start building your contribution room.

Once you open your FHSA, you have 15 years to make a qualifying withdrawal, otherwise your FHSA will automatically roll into your RRSP, meaning you lose out on your tax-free growth but still benefit from an extra $40,000 in tax-deductions.

How to Open an FHSA in Calgary

Most major financial institutions offer the FHSA. Here's a simple process to follow:

  1. Choose a provider: Bank, credit union, or online brokerage, I prefer wealthsimple for my self-directed investment accounts.

  2. Open the account: Provide ID and confirm your eligibility

  3. Start contributing: Even a small amount helps! $8,000 a year is only around $150 per week!

  4. Invest for growth: Choose from ETFs, GICs, mutual funds, or stocks. Be responsible, and seek independent financial advice.

  5. Withdraw tax-free when you’re ready to buy your first home!

FAQs: First Home Savings Account (FHSA) in Calgary

  • Yes! Opening early allows you to build contribution room, even if you're not ready to contribute today.

  • Absolutely. Each eligible person can open their own account and contribute up to $40,000.

  • You can transfer the funds to your RRSP or RRIF without taxes. Withdrawals for non-qualifying purposes are taxable.

  • No. Unlike the RRSP Home Buyers’ Plan, FHSA withdrawals are not repayable.

  • No. All eligible investment income grows tax-free inside the FHSA.

  • Yes, but the combined contributions across all FHSAs must not exceed your annual and lifetime limits.

Why Calgary First-Time Buyers Should Act Now

With Calgary’s housing market seeing steady demand, getting ahead on your down payment savings is more crucial than ever. The FHSA offers unmatched tax advantages, flexible usage, and zero repayment obligations. It’s a smart, strategic way to speed up your home-buying journey.

Whether you're eyeing a downtown condo, a starter home in Mahogany, or a townhome in Evanston, the First Home Savings Account is your gateway to making it happen faster.