Launched on April 1, 2023, the tax-free First Home Savings Account combines a TFSA with an RRSP. It allows Canadians to make a contribution of $8,000 per year up to a maximum of $40,000 over their lifetime toward the purchase of a first home. Contributions are tax free upon withdrawal, like with the TFSA, and tax-deductible against income, like with RRSP contributions. All of the Big Six Banks now offer a FHSA, including RBC, BMO, CIBC, TD, National Bank and Scotiabank. Other financial institutions include: Desjardins, EQ Bank, Questrade and Wealthsimple.
If you opened a FHSA in 2023, you can claim up to $8,000 in FHSA contributions made by December 31 as a FHSA deduction.
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