I will start by saying, I am the furthest thing from a financial expert, or accountant. So seek professional advice before you do anything, but in my opinion, this is a great option for first time home buyers.
This is my brief synopsis of the program, with links to the canada.ca website included so you can have a look for yourself.
If you are thinking about buying a home in 2025, (heck, even 2024) there is still time to open a FHSA account before the end of the year. This is a great program that acts as a hybrid between a TFSA and an RRSP account. You can contribute up to $8,000 per year, tax free towards a down payment on a home. The great thing about this is you can use this contribution to reduce your income for 2024 and pay less taxes. You can grow this money tax free, and withdraw it tax free. If you open one before December 31 of this year, you can roll that money over into 2025, meaning you can contribute (and write off) $16,000 next year. If you decide not to buy a home, you can roll this money into an RRSP or withdraw it.
You can let this money sit in an account for use later, or you can use it to invest and grow your downpayment over time. There is a maximum of 15 years from when you open this account, so if you don’t plan to buy in the next 15 years, this isn’t for you. You can only roll over the previous two years, so if you don’t plan to buy for a few years, maybe 2024 isn’t the year to start. But if a home is in your horizon over the next 2-3 years, I would suggest opening this up asap. You can do it at a bank, credit union, trust or insurance company. You can find more information here on how to do that.
There are only certain people who qualify for this, and stipulations on what a first time home buyer is for this program. For the complete rundown, and to see if you qualify, click here.
If you have more questions, never hesitate to reach out, we are always here to answer questions, you can call, email or text anytime. For a rundown on how to buy a home in Grande Prairie, we have a complete, step by step guide you can find here.
Thanks for reading, until next time!
Chris
