What if I and my partner maintain separate FHSA accounts and max it out every year. If we plan to buy separate condos after 5 years on each of our names using those FHSA accounts, will this FHSA arrangement work for us?
Question: can you use it to buy a duplex if you live in one side? Or could you house hack by buying a four bedroom home and renting out three bedrooms?
From what we’ve seen, it’s as long as you’re a Canadian resident - so citizens and permanent residents would be good to go as long as you also meet the other criteria. 😊
Hey Darrell! There’s not a lot of info on this yet, just given how new the account is, but we would imagine that as long as it’s your primary residence and you plan to live there for at least a year, you should be okay. Definitely something for us to look further into as more details emerge! 😊
Just want to say a BIG THANK YOU to you two and all of the work and energy you put into researching these topics so that someone like me can get trustworthy, well researched information! I'm looking to buy my first home as an Albertan (fingers crossed) in the next few years and this is super helpful! Love it!
Hi Steph and Den ! Just want to say that I love your content ! I started my financial literacy journey not too long ago and found it very challenging as they don't teach you this in school. Your easy to understand and well articulated videos helped me a lot ! Especially when it comes to knowing the types of accounts that everyone should have and the various investment options ! Now I'm sharing your videos with friends and family in my social circle who also want to learn ! You got yourself a new subscriber ! I look forward to seeing what other videos you come out with !
thank you for the really clear explanation guys! definitely going to look into starting an fhsa account... had to subscribe as well because I am looking to improve my financial literacy moving forward :)
Most people couldn’t explain the rules of a TFSA to me and don’t use it effectively. Great video, but I suspect this extra layer of complexity will only ensure more people make costly mistakes in which accounts they choose. At best it will push prices of starter homes up. Truth is, now everyone has to use this account to stay competitive in the starter home market.
Thank you! Agreed that sometimes more accounts can add more complexity and confusion - there's definitely more education needed on these accounts and how they work!
You missed one subject here. The money must be sit in the account for 90 days before one can withdraw it to purchase their home. The deadline to cut off the contribution is the end of dec of the year. It is a bit different from RRSP.
I had no idea about missing a couple years of contribution room and how you would have to wait another year essentially to top it off to the max! Thank you for that. Very helpful, I really wanted you two to make a video on this subject and I'm looking forward to the follow up on investment advice with this account. Keep being awesome 👌
1:09 this video makes the unfortunately very common mistake when explaining how RRSPs work. Tax deferral isn't the real benefit of the RRSP (it might not even work out that way for wealthy retirees), rather the real benefit is that your profits are tax free in exactly the same way as the TFSA. You just have to remember that RRSP is pre income tax while TFSA is post. If you think of the deferred tax portion of the RRSP as owned by the government and completely ignore it, assuming equivalent tax rate at deposit and withdrawal, the RRSP and TFSA are equivalent in net amount withdrawn. If your tax rate is lower at withdrawal, that's just an extra bonus for the RRSP.
Thx for the vid, planning to be move $8K from my HISA into an ETX on the FHSA so I get both: 1) immediate reduction in my table income , 2) have the growth and funds in the FHSA more readily available to take out in years time then I ever would in an RRSP By the way: I'd recommend you make a 'chill and get to know the process' video one of these days going over just you Amazon sponsored affiliated links and how you use em to make your vids! It'll be a good break from what you do while pushing those passive income streams. Just my $0.02. Cheers
Best FHSA deal expired on Oct 31st by TD.. they were handing out free $100 for opening FHSA with them and investing in a 14month GIC for 6% interest.. nothing current on the market comes even close
You also can't combine FHSA's. If you and your spouse both have separate accounts you can only use 1 to buy a house. The other needs to be rolled into an RRSP. If you use an RRSP to help with your down payment you can't use your spouse's or your own FHSA to pay back your RRSP.
Can you use the FHSA to build a home and not purchase outright? Or other home related expenses such as legal fees or appliances? What if you have a partner who owned a home within 4 years previous? Would that affect you using the funds to purchase a home together?
Amazingly informative video. Thanks for making this. I had a question about withdrawing the money from the account in the event I don't plan to buy a house. I understand that the amount is taxed as per that year's income, however I wanted to know if I can withdraw parts of the total investment over period of, say, 5 years.?
If I combine my (lifetime)40k FTSA and my max 38k pension withdrawel FTHB. Combined together (78k). I still cant afford GET approval by a bank with a 30$/hr job on a 350k condo. Welcome to Canada.
Great vid, can you please help clarify one point I’ve been struggling to understand. Issue - RC725 form requires details of the home to make an eligible withdrawal which takes 3-5 business days to process. Meanwhile earnest money deposit has to be done within a day or 2 at max of finalizing the agreement. Which means you won’t be able to pay EMD using FHSA funds. So how can someone circumnavigate this issue. Possible solution- Can I pay EMD using cash in my chequing account and later add that same amount to FHSA account and withdraw when I close this giving me enough time to make an eligible withdrawal? In this case would I be eligible for tax deduction on the entire amount in my FHSA? Question 2- Do I have to prove later to CRA where I used the funds from FHSA, like submit all receipts be it down payment, closing costs, renovations etc? Thank you so much whoever takes the time to understand and respond to this. ❤ it’s an issue all of us will face when withdrawing
First time watching your channel and am thoroughly impressed by knowledge, presentation (despite use of Benjamins vs Robert Bordens... lol) and ability to breakdown and explain complex investing into simpler terms. I do have a question: I had to move from a home I own a number of years ago to tend to ill family. I’ve been renting it out and claiming as such. Obviously, it is not my primary residence, however, I am the owner. Am I eligible to open this account? What happens to account and money after I move back to my home? Can I use this money to purchase home for another family member? If no, after purchasing in my name, can I sell to family member. If they also opened FHSA, can they pull money out and to purchase from me? thanks
Great information but the maximum lifetime limit for an FHSA account is $40k and the average price to buy a home today is $800k so basically we need a minimum of 10/20% down that is atleast $80k. So how are we supposed to bring the rest of $40k apart from FHSA?
Your fhsa should make u more than the initial investment based on what kind of investments creates your fhsa just like a tfsa last year I made 14% 40k times 14% is 5600
I love the info, even though I am in the U.S. I have other Canadian RUclipsrs that I watch and I have some knowledge. Will the two of you use the Smith maneuver when you buy your first home?
Hey, Darrell! Thanks for watching, and we're glad that you enjoyed the video still 😊 we always find it interesting to learn about the American accounts and specifics, too! Re: the Smith maneuver - we've definitely looked into it before, and it's an interesting strategy for your primary residence. It's something we're actively planning to use right now, but we'll keep you posted in the future!
Hello and good day. Great informative video! I have a question. Lets say you have contributed $24000 on your FHSA (for example: opened from 2023-2026). Lets say that for the 5% down on a house, you only need $17500. What happens to the $6500? Does it get tax? Or can it go back your other account free of tax?
About residency, let's say in 2023, you're a Canadian resident and opened an FHSA, then in 2025 you got an opportunity to work in the US (as such you became a non-resident Canadian), in 2030 you want to go back to Canada and re-establish residency, and want to buy a home so that once you land you're have place you can live on. Can you use the funds that accumulated in the FHSA for the purchase of that home?
Thank you for this amazing explanation. I'm wondering, once i move in to my new place that I bought with the FHSA, how long do I have to live in my newly purchased property before selling or renting it?
Hey, I was wondering if anyone could help me with some queries that I had on FHSA 1. Can me and my wife both open an FHSA account and use it for buying a single home? 2. Do I qualify for a home if I co-owned a home with a sibling, back in India but I have not lived in it for more than 4 years? 3. If the answer to above question is “No”, then does my wife qualify?
Thanks - glad you enjoyed the video! 😊 Also the $8k yearly limit seems okay compared to other registered accounts, but that total $40k limit seems small considering how expensive housing is nowadays.
@@stephandden Using average price of $1,000,000 a 20% dep is $200,000, so you only need another $160,000 LOL. And this is if you can carry an $800,000 mortgage. Yep. Consequently the fleeing of many Torontonians to other provinces like NS or Alberta.
If this can be used to purchase a property outside of Canada (I.e. for retirement) it would be really helpful to many Canadians who can't afford a home in Canada and might not be able to afford current rental prices on their pension.
I love your videos. I'm a college prof and have been using your videos to help direct students to the right education. How can I get in touch with you?
Nice video. Well presented. Though I have a question, for married people if they both have FHSA account can they use those funds for buying their first home? Or should it be only one of them? Thanks
question is: Can you use your FHSA + with your 35k RRSP first time home buyer's program and combine it? IS there a rule where you can only use one or the other, or you can use both? It would help us Canadians. Also, would you happen to know is, lets say you open FHSA and put 8k in it, and then you know you're buying it in 2-3 years, can FHSA account be put into a 4-5% GIC so at least it grows by itself while you save up on other ends? Just trying to think of ways we can use the system to benefit us. :) WE in TORONTOOOOOOOOOOOOOOOO and every condo is like 500k + =(
Hi! Yes, you can use both your FHSA funds and up to $35,000 from your RRSP through the 'First Time Home Buyer's Plan' towards a qualifying home. Regarding what you can do with the money held in your FHSA, yes, you can buy investments like GIC's so that your money grows between now and the time you buy your first home. Ideally you will invest your money vs treating it as a savings account (as that's how you're truly taking full advantage of the tax-free growth!), but you do want to account for the short time horizon (ie. 2-3 years like you mentioned), so you likely want to stay away from riskier investments. We hope that helps! 😊
Hi there, thank you for the really informative video. Is the purchasing of the property limited to Canadian borders, or it could be used to buy a house in another country (given that is your first house). Thank you :)
Thank you for sharing this information guys. It was really helpful. However, I just have a question which is, what about the gains we get from the money we invest in stocks from the FHSA account? Will that be added to the FHSA account limit? or can we withdraw the gains on the capital? let's say we put 5K in FHSA and invested that money into stocks now it increased to 6K. So what about that 1K gain?
It’s really up to you - but similar to our other investing videos, we definitely encourage either the DIY and robo-advisor approach. Steph has a video coming soon where she’ll dive into all of the potential options for investing in an FHSA, along with what she plans to do with hers 😊
13:12 why you think no a lot of people going to use it both rrsp and fhsa ? Only make sense in Toronto to have 75k on your account and another 75k on your spouse account and when combined can be used no?
Thank you for this information. If you use FHSA money to buy your first house. Are we able to sell the house after one year or 2 years staying in the house.? Or we are not able to sell the house at all ?
If I buy an investment property in 2024 (aka not primary residence), am I able to use my FHSA for a primary residence within the next 4yrs? Or will I have to wait tilll after 2028 to use my FHSA towards a home?
I've never heard of the rule saying you can't stack more Then 2 years of contribution room. I thought it was like the TFSA and you could carry forward contribution room. Where are you getting this information, cause I've never seen it anywhere?
Here’s a link that expands on this further - www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/contributing-your-fhsa.html#
@@stephandden interesting, thank you for that. Another question that I couldn't find an answer on. Say you don't contribute the first 3 years. And start in year 4. Youd have $16,000 in year 4 would the 3rd year carry forward so you could do 16K in year 3 and then year 4?
So just so I understand if I open a FHSA in 2023 but don’t put Anything this year next year in 2024 I can put $16000.00.? But if I open FHSA in 2024 then I can only put 8000? Correct?
This is for individuals correct? My husband and I are hoping to buy a house together. We get to contribute 8k to each of our accounts making a total of 16k for the year into our accounts? Or is it 8k per home?
Hello, not sure if you will see this but awesome video. I wanted to ask few things Lets say if i am closing a house on Aug 2024 and have a written aggressive as of today, June 4. Can i put in request to withdraw money from FHSA today or do i have to wait closer to closing? OR what i understand, as long as house is closed before 1 October 2025, i should be good? Secondly, me and partner has to withdraw the money at same time or it can be different? Both of our names will be on the house agreement and we both have separate FHSA accounts and meet the criteria? Thank you so much
how come in example number 2, i would lose the extra 8k that i didn't invest form previous years so its only 18k instead of 24k? vs TFSA the room rolls over
It’s how the government designed the account. Unlike the TFSA where your contribution room grows every year, with this account you will lose contribution room if you’re not able to keep up with making contributions that ultimately max out the room each year. They give you some breathing room in case you can’t max it out one year, but the expectation is for you to keep up. Hope that helps 😊
Hey Diego! This account was created with intention of helping tackle unaffordable housing here in Canada and with that, the home does need to be purchased in Canada. 😊
I have a question, does a whole quadruplex / four-plex count as an eligible home if I move into it? Or is it considered an investment property non-eligible for FHSA withdrawals?
Ideally you're using your TFSA to invest for retirement (aka the long-term), so you can benefit from years of tax free growth. Also, with the FHSA, you get the same benefit as your TFSA (tax free growth) and you can reduce your taxable income at the same time. You can still use your TFSA to buy a home, but those are the reasons why an FHSA is beneficial 😊
Also I do not play the game of wanting a house. I know people with houses living paycheck to paychek only to pay their whole house at the end of their life around 70 vs me or others renting having enough to save travel investing and later on to buy whole a place in another country that has more common sense and choices financially. In the end we are all ending in the same place and no one will care 10 years after that.
Except their house will appreciate in value.. by a lot. And if you don't own a home, you could end up paying like, 4x what rent is now, 20+ years from now. Where as the mortgage stays the same. They struggle for now, but won't later.
What if you open a FHSA, but purchase a home without it. Me and my partner have a down payment already, but are thinking of opening one for the tax savings.
Do you have any questions about CDIC protection of deposits held in an FHSA? Ask away below!
Hi Steph and Den.
Are people holding PR but of Indian Origin. Can they open this account?
What if I and my partner maintain separate FHSA accounts and max it out every year. If we plan to buy separate condos after 5 years on each of our names using those FHSA accounts, will this FHSA arrangement work for us?
Question: can you use it to buy a duplex if you live in one side? Or could you house hack by buying a four bedroom home and renting out three bedrooms?
From what we’ve seen, it’s as long as you’re a Canadian resident - so citizens and permanent residents would be good to go as long as you also meet the other criteria. 😊
Hey Darrell! There’s not a lot of info on this yet, just given how new the account is, but we would imagine that as long as it’s your primary residence and you plan to live there for at least a year, you should be okay. Definitely something for us to look further into as more details emerge! 😊
Just want to say a BIG THANK YOU to you two and all of the work and energy you put into researching these topics so that someone like me can get trustworthy, well researched information! I'm looking to buy my first home as an Albertan (fingers crossed) in the next few years and this is super helpful! Love it!
Thank you so much! We really appreciate it 🙏🏿🙏🏻
You two explain everything perfectly. Thanks!
We love to hear that! 🙏🏿🙌🏻
$40,000 lifetime maximum, what an absolute joke of a country we're living in when 700sqft apartments can cost up to half a mill.
Hi Steph and Den ! Just want to say that I love your content ! I started my financial literacy journey not too long ago and found it very challenging as they don't teach you this in school. Your easy to understand and well articulated videos helped me a lot ! Especially when it comes to knowing the types of accounts that everyone should have and the various investment options ! Now I'm sharing your videos with friends and family in my social circle who also want to learn !
You got yourself a new subscriber ! I look forward to seeing what other videos you come out with !
For once in my life I feel like I understood a financial video! Keep up the good work! You just gained a subscriber. More gen z needs this duo 💪🏽🔥
We LOVE to hear that! Thank you so much 🙌🏿🙏🏻
This was the better of 5 videos I watched nice job
Thank you so much! We’re happy to hear that 😊
Thank you for providing an informative video on FHSA.
Thank you for watching! 😊
Very well explained. Thank you! Looks like we will each be opening an FHSA.
thank you for the really clear explanation guys! definitely going to look into starting an fhsa account...
had to subscribe as well because I am looking to improve my financial literacy moving forward :)
Thanks for this. So clear and to the point!
We're happy to hear that! Thank you for watching 😊
Most people couldn’t explain the rules of a TFSA to me and don’t use it effectively. Great video, but I suspect this extra layer of complexity will only ensure more people make costly mistakes in which accounts they choose. At best it will push prices of starter homes up. Truth is, now everyone has to use this account to stay competitive in the starter home market.
Thank you! Agreed that sometimes more accounts can add more complexity and confusion - there's definitely more education needed on these accounts and how they work!
Just found this channel. Love the Canadian specific lens. Subbed dudes ✌️
We're glad you're here! 😊
Thanks for being so good at explaining things, as always!
Thanks, very knowlegable and helpful for myself as a 20 year old.
So glad you found it helpful 😊
Very informative breakdown, thanks! The production quality and script are also super on point, nice work.
Thanks so much! 😊
Very good and informative vid thanks , sent this to my kids
Very helpful video. Could you guys make another video now that most banks have FHSA available?
You missed one subject here. The money must be sit in the account for 90 days before one can withdraw it to purchase their home. The deadline to cut off the contribution is the end of dec of the year. It is a bit different from RRSP.
Great stuff guys! Shared on my real estate page!
Thanks for sharing! 😊
Super easy to listen to, and understand. I had this in the background while I did other stuff. Great work you guys
Thank you! We’re happy to hear that 😊
Thank you for the information...highly appreciated 👍👍
Thanks for watching! 😊
Excellent video! Much appreciated, thank you!! 🙏
Thank you so much 😊
Great video. Easy to understand.
Thank you! 🙌🏿🙌🏻
Very clearly explained, thanks 🙏🏻
Thank you! 🙌🏿🙌🏻
this video was very insightful thank you
Very very well presented, detailed video. Love the clarity and communication skills of you, guys. Thankyou!
I had no idea about missing a couple years of contribution room and how you would have to wait another year essentially to top it off to the max! Thank you for that. Very helpful, I really wanted you two to make a video on this subject and I'm looking forward to the follow up on investment advice with this account. Keep being awesome 👌
Thanks so much! Yes, that video's coming soon too 😊🎉
Can you contribute to FHSA while at same time having already contributed $6500 to your TFSA?
Can we do trading in FHSA like buy an etf and then sell it after 5 months and can we use the same to to buy new stock or etf again in FHSA
1:09 this video makes the unfortunately very common mistake when explaining how RRSPs work. Tax deferral isn't the real benefit of the RRSP (it might not even work out that way for wealthy retirees), rather the real benefit is that your profits are tax free in exactly the same way as the TFSA. You just have to remember that RRSP is pre income tax while TFSA is post. If you think of the deferred tax portion of the RRSP as owned by the government and completely ignore it, assuming equivalent tax rate at deposit and withdrawal, the RRSP and TFSA are equivalent in net amount withdrawn. If your tax rate is lower at withdrawal, that's just an extra bonus for the RRSP.
Thx for the vid, planning to be move $8K from my HISA into an ETX on the FHSA so I get both: 1) immediate reduction in my table income , 2) have the growth and funds in the FHSA more readily available to take out in years time then I ever would in an RRSP
By the way: I'd recommend you make a 'chill and get to know the process' video one of these days going over just you Amazon sponsored affiliated links and how you use em to make your vids! It'll be a good break from what you do while pushing those passive income streams. Just my $0.02. Cheers
Thanks for watching + sharing! 🙌🏿🙌🏻
Best FHSA deal expired on Oct 31st by TD.. they were handing out free $100 for opening FHSA with them and investing in a 14month GIC for 6% interest.. nothing current on the market comes even close
Very informative, thanks
Thanks for watching! 😊
You also can't combine FHSA's. If you and your spouse both have separate accounts you can only use 1 to buy a house. The other needs to be rolled into an RRSP. If you use an RRSP to help with your down payment you can't use your spouse's or your own FHSA to pay back your RRSP.
Can you use the FHSA to build a home and not purchase outright? Or other home related expenses such as legal fees or appliances?
What if you have a partner who owned a home within 4 years previous? Would that affect you using the funds to purchase a home together?
Thank you so much for this video
Thanks for watching! 😊
I actually would love ot know more on CDIC! I had no zero idea!
This was very informative and thorough, but also simple enough for a troglodyte like myself to understand. Thank you for making this!
We're happy to hear that! 😊
Amazingly informative video. Thanks for making this.
I had a question about withdrawing the money from the account in the event I don't plan to buy a house. I understand that the amount is taxed as per that year's income, however I wanted to know if I can withdraw parts of the total investment over period of, say, 5 years.?
Thank you, this is such as comprehensive guide to the FHSA
So glad you liked it - thanks for watching! 😊
I love all your videos. Updated and most recent are all helpful
Thank you so much! 😊
Great video! You guys are awesome. What if husband wife jointly want to buy a house and want to use the money from their respective FHSAs
Thank you. Good information. But the withdrawal form is not RC275. It's RC725 - Request to Make a Qualifying Withdrawal from your FHSA. 8:33
Thanks for the info.
Thanks for watching 😊
If I combine my (lifetime)40k FTSA and my max 38k pension withdrawel FTHB. Combined together (78k). I still cant afford GET approval by a bank with a 30$/hr job on a 350k condo.
Welcome to Canada.
Great vid, can you please help clarify one point I’ve been struggling to understand.
Issue - RC725 form requires details of the home to make an eligible withdrawal which takes 3-5 business days to process. Meanwhile earnest money deposit has to be done within a day or 2 at max of finalizing the agreement. Which means you won’t be able to pay EMD using FHSA funds. So how can someone circumnavigate this issue.
Possible solution- Can I pay EMD using cash in my chequing account and later add that same amount to FHSA account and withdraw when I close this giving me enough time to make an eligible withdrawal? In this case would I be eligible for tax deduction on the entire amount in my FHSA?
Question 2- Do I have to prove later to CRA where I used the funds from FHSA, like submit all receipts be it down payment, closing costs, renovations etc?
Thank you so much whoever takes the time to understand and respond to this. ❤ it’s an issue all of us will face when withdrawing
First time watching your channel and am thoroughly impressed by knowledge, presentation (despite use of Benjamins vs Robert Bordens... lol) and ability to breakdown and explain complex investing into simpler terms.
I do have a question: I had to move from a home I own a number of years ago to tend to ill family. I’ve been renting it out and claiming as such. Obviously, it is not my primary residence, however, I am the owner.
Am I eligible to open this account? What happens to account and money after I move back to my home? Can I use this money to purchase home for another family member? If no, after purchasing in my name, can I sell to family member. If they also opened FHSA, can they pull money out and to purchase from me?
thanks
Great information but the maximum lifetime limit for an FHSA account is $40k and the average price to buy a home today is $800k so basically we need a minimum of 10/20% down that is atleast $80k. So how are we supposed to bring the rest of $40k apart from FHSA?
Your fhsa should make u more than the initial investment based on what kind of investments creates your fhsa just like a tfsa last year I made 14% 40k times 14% is 5600
I love the info, even though I am in the U.S. I have other Canadian RUclipsrs that I watch and I have some knowledge.
Will the two of you use the Smith maneuver when you buy your first home?
Hey, Darrell! Thanks for watching, and we're glad that you enjoyed the video still 😊 we always find it interesting to learn about the American accounts and specifics, too!
Re: the Smith maneuver - we've definitely looked into it before, and it's an interesting strategy for your primary residence. It's something we're actively planning to use right now, but we'll keep you posted in the future!
Hello and good day. Great informative video! I have a question. Lets say you have contributed $24000 on your FHSA (for example: opened from 2023-2026). Lets say that for the 5% down on a house, you only need $17500. What happens to the $6500? Does it get tax? Or can it go back your other account free of tax?
About residency, let's say in 2023, you're a Canadian resident and opened an FHSA, then in 2025 you got an opportunity to work in the US (as such you became a non-resident Canadian), in 2030 you want to go back to Canada and re-establish residency, and want to buy a home so that once you land you're have place you can live on. Can you use the funds that accumulated in the FHSA for the purchase of that home?
Can we use both husband and wife’s HBP and FHSA when only one name is on the home buying contract?
Thank you for this amazing explanation. I'm wondering, once i move in to my new place that I bought with the FHSA, how long do I have to live in my newly purchased property before selling or renting it?
Hey, I was wondering if anyone could help me with some queries that I had on FHSA
1. Can me and my wife both open an FHSA account and use it for buying a single home?
2. Do I qualify for a home if I co-owned a home with a sibling, back in India but I have not lived in it for more than 4 years?
3. If the answer to above question is “No”, then does my wife qualify?
Thanks for your video. Can my husband and I create separate FHSA account to save up 80 K to buy our first home?
Can I continue to contribute to previously opened FHSA after I make a home purchase?
Love how this was presented! Very easy to understand. The $8k annual limit is kind of small tho
Thanks - glad you enjoyed the video! 😊 Also the $8k yearly limit seems okay compared to other registered accounts, but that total $40k limit seems small considering how expensive housing is nowadays.
@@stephandden Using average price of $1,000,000 a 20% dep is $200,000, so you only need another $160,000 LOL. And this is if you can carry an $800,000 mortgage. Yep. Consequently the fleeing of many Torontonians to other provinces like NS or Alberta.
@@stevemanninghomeinsight60 Should build a wall around Toronto.
@Steve Manning Home Insight why would you get a home that costs 1M?
If this can be used to purchase a property outside of Canada (I.e. for retirement) it would be really helpful to many Canadians who can't afford a home in Canada and might not be able to afford current rental prices on their pension.
Why have you used American dollara in your graphics? Is it that difficult to find pictures of Canadian dollara?
Yes, there aren't many images of Canadian dollars, unfortunately! We use the same image of 'money' for all of our videos, Canadian specific or not. 😊
Is there any interest rate regarding FHSA?
I love your videos. I'm a college prof and have been using your videos to help direct students to the right education. How can I get in touch with you?
One question… can partners/spouses also open a FHSA and contribute $40k? So $40k +$40k = a max of $80k towards their first home?
Nice video. Well presented. Though I have a question, for married people if they both have FHSA account can they use those funds for buying their first home? Or should it be only one of them? Thanks
question is: Can you use your FHSA + with your 35k RRSP first time home buyer's program and combine it? IS there a rule where you can only use one or the other, or you can use both? It would help us Canadians. Also, would you happen to know is, lets say you open FHSA and put 8k in it, and then you know you're buying it in 2-3 years, can FHSA account be put into a 4-5% GIC so at least it grows by itself while you save up on other ends? Just trying to think of ways we can use the system to benefit us. :) WE in TORONTOOOOOOOOOOOOOOOO and every condo is like 500k + =(
Den answered that in the video. You can use both
Hi! Yes, you can use both your FHSA funds and up to $35,000 from your RRSP through the 'First Time Home Buyer's Plan' towards a qualifying home.
Regarding what you can do with the money held in your FHSA, yes, you can buy investments like GIC's so that your money grows between now and the time you buy your first home. Ideally you will invest your money vs treating it as a savings account (as that's how you're truly taking full advantage of the tax-free growth!), but you do want to account for the short time horizon (ie. 2-3 years like you mentioned), so you likely want to stay away from riskier investments.
We hope that helps! 😊
This might be a silly question (sorry) but can you invest for example in more speculative assets such as bitcoin?
How many years can you defer the contribution for your taxes??
Can husband and wife open separate FHSA accounts?
Hi there, thank you for the really informative video. Is the purchasing of the property limited to Canadian borders, or it could be used to buy a house in another country (given that is your first house). Thank you :)
Is the lifetime limit and the anual limit fixed or will they reassess and adjust the limits depending on the economy and inflation
Can I put money in fhsa today and withdraw tomorrow for buying a house¿
but what's the difference between a TFSA? I use it to technically save for a house as well.
If you don't end up buying a home, can you transfer it all into a TFSA?
No, but you can transfer it to an RRSP 😊
This will allow me to get a parking spot at a condo but not the condo itself
Ha, sadly not wrong in the expensive markets 😅
Thank you for sharing this information guys. It was really helpful. However, I just have a question which is, what about the gains we get from the money we invest in stocks from the FHSA account? Will that be added to the FHSA account limit? or can we withdraw the gains on the capital? let's say we put 5K in FHSA and invested that money into stocks now it increased to 6K. So what about that 1K gain?
Should I be using a managed FHSA or a DIY one?
It’s really up to you - but similar to our other investing videos, we definitely encourage either the DIY and robo-advisor approach. Steph has a video coming soon where she’ll dive into all of the potential options for investing in an FHSA, along with what she plans to do with hers 😊
Why is the money used to explain is in US funds? I thought this is for Canadians.
We typically use Canadian money in our videos now 😊
If you have owned a home in last 4 years but you didn't live in it, are you eligable for opening the account or no?
13:12 why you think no a lot of people going to use it both rrsp and fhsa ? Only make sense in Toronto to have 75k on your account and another 75k on your spouse account and when combined can be used no?
Awesome flow of the video. One question -
Can me & my spouse both contribute to our individual FHSAs and use them to buy a joint property?
Thank you! Yes, it looks like you could both open and contribute to your own individual FHSAs, and use them to buy the same qualifying property 😊
What's the benefits of FHSA account if I don't plan to buy a house ?
Thank you for this information.
If you use FHSA money to buy your first house. Are we able to sell the house after one year or 2 years staying in the house.?
Or we are not able to sell the house at all ?
If I buy an investment property in 2024 (aka not primary residence), am I able to use my FHSA for a primary residence within the next 4yrs? Or will I have to wait tilll after 2028 to use my FHSA towards a home?
I've never heard of the rule saying you can't stack more
Then 2 years of contribution room. I thought it was like the TFSA and you could carry forward contribution room. Where are you getting this information, cause I've never seen it anywhere?
Here’s a link that expands on this further - www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/contributing-your-fhsa.html#
@@stephandden interesting, thank you for that. Another question that I couldn't find an answer on. Say you don't contribute the first 3 years. And start in year 4. Youd have $16,000 in year 4 would the 3rd year carry forward so you could do 16K in year 3 and then year 4?
So just so I understand if I open a FHSA in 2023 but don’t put Anything this year next year in 2024 I can put $16000.00.? But if I open FHSA in 2024 then I can only put 8000? Correct?
Can RRSP AND FHSA GO HAND IN HAND FIR FIRST HIME BUYING?
This is for individuals correct? My husband and I are hoping to buy a house together. We get to contribute 8k to each of our accounts making a total of 16k for the year into our accounts? Or is it 8k per home?
Is there any limit to hold this fund before withdrawing to use for down payment for our first home buying
Can i use FHSA to buy stocks?
Do i need to actually open an FHSA account to start receiving the contribution room?
Hello, not sure if you will see this but awesome video.
I wanted to ask few things
Lets say if i am closing a house on Aug 2024 and have a written aggressive as of today, June 4. Can i put in request to withdraw money from FHSA today or do i have to wait closer to closing?
OR what i understand, as long as house is closed before 1 October 2025, i should be good?
Secondly, me and partner has to withdraw the money at same time or it can be different? Both of our names will be on the house agreement and we both have separate FHSA accounts and meet the criteria?
Thank you so much
Hi thanks for information, can we trade index and stock options in FHSA ?
If your investment is approved to be in a rrsp or tfsa you are good
how come in example number 2, i would lose the extra 8k that i didn't invest form previous years so its only 18k instead of 24k? vs TFSA the room rolls over
It’s how the government designed the account. Unlike the TFSA where your contribution room grows every year, with this account you will lose contribution room if you’re not able to keep up with making contributions that ultimately max out the room each year. They give you some breathing room in case you can’t max it out one year, but the expectation is for you to keep up. Hope that helps 😊
Does the home need to be bought in canada? Or could you save to buy a house outside the county.
Hey Diego! This account was created with intention of helping tackle unaffordable housing here in Canada and with that, the home does need to be purchased in Canada. 😊
7:40 does this refer to the current years limit plus last year's unused limit?
Ya
I have a question, does a whole quadruplex / four-plex count as an eligible home if I move into it? Or is it considered an investment property non-eligible for FHSA withdrawals?
why not just use the TFSA to buy a home? I don't really see the difference.
Ideally you're using your TFSA to invest for retirement (aka the long-term), so you can benefit from years of tax free growth. Also, with the FHSA, you get the same benefit as your TFSA (tax free growth) and you can reduce your taxable income at the same time.
You can still use your TFSA to buy a home, but those are the reasons why an FHSA is beneficial 😊
Do you need rsp contribution room to move this money to a rsp after 15 years?
Can me and my wife open a separate FHSA account and take Benefits of both account for buying our first home
So do you get penalized if your annual 8k goes over the limit with an interest rate?
Also I do not play the game of wanting a house. I know people with houses living paycheck to paychek only to pay their whole house at the end of their life around 70 vs me or others renting having enough to save travel investing and later on to buy whole a place in another country that has more common sense and choices financially. In the end we are all ending in the same place and no one will care 10 years after that.
Except their house will appreciate in value.. by a lot. And if you don't own a home, you could end up paying like, 4x what rent is now, 20+ years from now. Where as the mortgage stays the same. They struggle for now, but won't later.
What if you open a FHSA, but purchase a home without it. Me and my partner have a down payment already, but are thinking of opening one for the tax savings.