TFSA or FHSA?

The FHSA (First-time Home Savings Account) was launched in 2023 to help first time home buyers save for what will probably be their largest purchase ever.

Unlike the TFSA you do get a TAX DEDUCTION with the deposit (maximum $8,000 per year) just like a RRSP but like a TFSA you do not pay tax when the money is pulled out to purchase your first home.

FOR WHAT IT’S WORTH: for those that have contributed to a TFSA with the goal of buying a home in the next 10 years consider switching some of those funds into a FHSA to generate the tax deduction and still have the benefit of tax deferred growth and tax free withdrawal for a home.