FSRA# 13047 Valko Financial Ltd.

NOW is the time to open your First Time Home Buyers Savings Account – FHSA

With inflation slowly on the decline and interest rates seemingly to be holding at 4.5%, Canadians are finally feeling some economic relief. However, Canadians hoping to buy their first home in 2023 and beyond still feel housing is unaffordable—and the majority of them have even given up on the idea of buying a home altogether.

In an effort to change this and assist prospective first-time homebuyers, the federal government announced the tax-free First Home Saving Account (FHSA) as part of their 2022 budget. As of April 1, 2023, Canadians can open this account and begin saving for their first home tax-free and incur additional benefits.

The FHSA is a registered savings plan that gives potential first-time homebuyers the ability to save up to $40,000 ($8,000 per annum) towards their home purchase without accruing tax. Similar to a Registered Retirement Savings Account (RRSP), contributions to a FHSA are tax-deductible on your income tax return for the tax year you make them in.

In essence, the FHSA leverages characteristics of Tax Free Savings Account (TFSAs) and RRSPs to provide new homeowners a running start in an economically difficult period.

If you or someone you know dreams of owning their first home within the next 15 years, can contact our team and we would be happy to set up an appointment to go over all the benefits and help set up a FHSA.

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Tracy and her team are here to help. Apply online or contact us today and allow us to help you along your journey in life. We will always provide sound financial advice on the best options for your mortgage.