The Department of Finance announced more details about the new Tax-Free First Home Savings Account (FHSA), including an age limit of 71 and the ability to carry forward up to $8,000 in unused contributions.
First proposed in the 2022 federal budget, the FHSA would allow first-time home buyers to save for a down payment on a tax-free basis. Like with an RRSP, contributions to an FHSA would be tax-deductible, and withdrawals to purchase a first home — including from investment income — would be non-taxable, like with a TFSA. There is an annual contribution limit of $8,000 and a lifetime contribution limit of $40,000.