iAtoday

The first home savings account (FHSA) is an additional tool to help people build up a down payment on a first home while benefitting from attractive tax advantages.

We are therefore pleased to announce that we will be offering the group FHSA to our clients starting in January 2025.

Why offer the group FHSA?

In recent years, it has become increasingly difficult for many people to fulfil their dream of buying a home. People working toward this dream can experience stress1, and this can affect your clients. With the group FHSA, plan sponsors can contribute to the total wellbeing of their members by offering them an additional savings vehicle to help them achieve their goal.

Key features of the FHSA

• Eligible individuals can contribute up to $8,000 per year, for a lifetime maximum of $40,000, toward the purchase of a qualifying home.
• Contributions are tax deductible, and investment income and withdrawals used to purchase a qualifying home are tax free.
• Withdrawals do not have to be repaid, unlike those made under the Home Buyers’ Plan (HBP).
• The FHSA combines the advantages of the registered retirement savings plan (RRSP) and the tax-free savings account (TFSA).

For more information, refer to the group FHSA brochure.

Don’t hesitate to contact your Account Executive to discover the advantages of the group FHSA for your clients.

¹ Institute of Financial Planning: Real Estate Affordability and Financial Stress: Challenges for Financial Planning