Withdrawals to purchase a first home, including from investment income, would be non-taxable, like a Tax-Free Savings Account (TFSA).
There will be an annual contribution limit of $8,000 and whenever the accounts become available in 2023, Canadians will be able to invest the full amount in that year.
An FHSA would be permitted to hold the same qualified investments that are currently allowed to be held in a TFSA, such as holding a broad range of investments, including mutual funds, publicly traded securities, government and corporate bonds, and guaranteed investment certificates.
Qualifying for FHSA
Although it is intended for first home buyers, the definition of this is not absolute, meaning those that have previously been homeowners may still qualify.
The rules state that FHSA holders must be over 18 and has not owned a home in the part of the calendar year in which they open the account or in the previous four calendar years.
