FHSAs—A True No-Brainer

Don’t throw away free money!

If you’re saving for your first home and are eligible to open an FHSA—DO IT! I beg you.

Please share with someone you know who’s saving for their first home.

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I’m begging you, please share this video with your kids, your friends, your coworkers, even your enemies—be a better person. I’m still meeting lots of young adults who are eligible to open an FHSA and not doing it. Crazy. This is driving me nuts. First Home Savings Account. If you qualify—you’re over the age of majority, you’re saving for your first home—these are a true no-brainer.

It’s like an RRSP marries a TFSA and they give birth to the perfect child. That golden baby inherits only the best qualities of each of its parents. The contribution, up to an $8,000 annual max, $40,000 lifetime max, is tax deductible like an RRSP. Wow. If you’re in the 30% marginal tax bracket, you get $2,400 back—free money—on max contribution.

The growth of your money once within the FHSA—no tax, like an RRSP and TFSA. “Ah, but they tax you on withdrawal, right? Like an RRSP?” No! Remember, the FHSA took only the best qualities from each of its parents. So, no tax on withdrawal of being used to buy a home—like a TFSA. Amazing!

“Oh Dave—it’s not big enough. It’s capped at only 40G lifetime.” OK, so you’re going to protest and throw away free money? Don’t be a weirdo. If you’re eligible look into these now. For people using the FHSA, it stands for Fantastic Home Savings Account. Those eligible with savings who are not using the FHSA are still part of an FHSA club. Foolish Home Savers Anonymous.