FIRST HOME SAVINGS ACCOUNT (FHSA)

You are a first-time home buyer for the purpose of opening an FHSA if, when you open the account:

• You did not live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that you owned or jointly owned in this calendar year

AND

• You did not live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that your spouse or common-law partner owned or jointly owned in this calendar year or in the previous 4 calendar years
  or
  
• You do not have a spouse or common-law partner at the time you open the account

Yes, the home you're buying or building must be located in Canada.

Yes, FHSA contributions are generally tax deductible. The maximum lifetime limit is $40,000 and the yearly limit is $8,000 but any unused contribution can be carried forward and contributed in future years. For example, if you contribute only $4,000 in year 1, your contribution limit for the next year is your newly gained $8,000 plus your carry over of $4,000 from the year(s) prior.

No, the only the holder of the FHSA can make a contribution to their FHSA plan.

It depends which investment vehicle you select for your FHSA and your advisor will help you determine the best option that fit your needs.

You have until the end of the year you turn the age of 71 to participate in this program. You should close your FHSA accounts at this point to avoid tax consequences.

You can transfer your FHSA to your RRSP or RRIF's without any tax consequences as long as it is a direct transfer.

Yes, you can transfer from your RRSPs to your FHSA. The transfer will reduce your unused FHSA participation room. You can also transfer from your spousal/ common-law partner RRSPs to your FHSAs.

No, the account is meant for a first time home buyer to save for a down payment and can only be used by the individual holding the plan.

No, the funds in your FHSA are meant to go towards the purchase of a home only.