Equitable Life of Canada announced September 11 that it is launching the Equitable First Home Savings Account (FHSA) to help member clients save for their first homes. Those interested and eligible for a FHSA are encouraged by the mutual company to contact their advisors.
“You must be a first-time homebuyer at the time of the withdrawal, and you can not have owned a home in which you lived in at any time during the calendar year when the withdrawal is made or at any time in the preceding four calendar years,” they explain.
“The FHSA is a registered plan that provides first-time homebuyers the opportunity to invest up to $40,000 for the purchase of a first home on a tax-free basis. Like a Registered Retirement Savings Plan (RRSP), contributions are tax-deductible. Withdrawals to purchase a first home – including from investment income – are non-taxable, like a Tax-Free Savings Account (TFSA),” they summarize in an announcement about the launch.
Unused FHSA proceeds can be transferred on a tax-deferred basis to an RRSP or a Registered Retirement Income Fund (RRIF). The annual contribution limit is $8,000, with a lifetime limit of $40,000.