First Home Savings Account (FHSA)

A first-time home buyer is generally someone who has never owned a home before. In some cases, you may still qualify if you haven’t owned a home in the past four years or are purchasing with a spouse who is a first-time buyer. Programs like the First Home Savings Account (FHSA) and government incentives can help eligible buyers with their purchase.

A first home is typically a residential property that you’re purchasing for the first time and plan to use as your primary residence. It can be a house, condo, or other eligible property type. Some first-time home buyer programs may have specific criteria for what qualifies as a first home.

You can only have one First Home Savings Account (FHSA) in your name. However, you can hold multiple FHSAs at different financial institutions as long as your total contributions stay within the annual and lifetime limits. It’s important to track your contributions to avoid penalties.

To make a qualifying withdrawal from your FHSA, you must be a first-time home buyer and intend to use the home as your principal residence within a year of purchase. The property must be located in Canada, and you need to have a written agreement to buy or build it. You must also complete the withdrawal before the end of the following year after signing the agreement.

You can withdraw from your FHSA tax-free when purchasing your first home, as long as you meet the eligibility requirements. If you withdraw funds for other purposes, the amount will be taxed as income. To make a qualifying withdrawal, you’ll need to provide documentation confirming your home purchase.