Eligibility: To open a First Home Savings Account (FHSA), you must be a resident of Canada and at least 18, or the age of majority in your province. You must be a first-time home buyer.

Contributions: You can contribute up to $8,000 annually to a maximum amount of $40,000. If you contribute less than $8,000 in any year, you can carry forward the unused amount only to the following year.

Tax treatment: Contribution amounts are deducted from taxable income, either for the current tax year or any future year. Investments grow tax-free, and funds are withdrawn tax-free.

Duration: An FHSA can remain open for up to 15 years (or the end of the year you turn 71).

Investments: You can hold the same types of investments allowed in a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA).

Transfer to an RRSP: If you don’t use FHSA funds to purchase a home, you can transfer the funds tax-free to your RRSP without affecting your RRSP contribution room. Otherwise, withdrawn funds are fully taxable.

This material was prepared for and published on behalf of your financial advisor and is intended only for clients resident in the jurisdiction(s) where their representative is registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management or its dealer subsidiaries Assante Capital Management Ltd. and Assante Financial Management Ltd., nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada and the MFDA Investor Protection Corporation (excluding Quebec). © 2022 CI Assante Wealth Management. All rights reserved.