The Tax-Free First Home Savings Account (FHSA): Your Key to Homeownership in Canada 🇨🇦🏠

The Tax-Free First Home Savings Account (FHSA): Your Key to Homeownership in Canada 🇨🇦🏠 | xoreni

Рет қаралды 2,551

Күн бұрын

Are you dreaming of owning a home in Canada but struggling to save for a down payment? The Tax-Free First Home Savings Account (FHSA) could be the solution you've been looking for! In this video, I explain how the FHSA works, its benefits, and how you can take advantage of it to reach your home ownership goals faster.
This account is a game-changer and I hope you'll take advantage of it!
Learn more: www.canada.ca/en/revenue-agen...
TFSA Explained - • The Ultimate Guide to ...
CHAPTERS
0:00 Intro
0:58 Budget Day
2:10 What is the FHSA?
2:23 How does the FHSA work?
3:34 How much can I contribute to the FHSA?
5:33 Who can open the FHSA?
7:20 When will the account close?
7:34 What is the best way to use the FHSA?
8:35 Mistakes to avoid with this account
13:06 Outro
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Disclaimer: The views and opinions shared on this channel are for informational and educational purposes only. This is NOT financial advice. Always do your own research and due diligence before investing.
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xo, Reni ♡

Пікірлер: 79

@juicyoskitchen349 Жыл бұрын

Great Video Reni, thanks so much for the information

@xoReni Жыл бұрын

My pleasure! Thank you for watching 🙌🏾

@abiodunomotosho9026 Жыл бұрын

Excellent, thank you for sharing this information

@xoReni Жыл бұрын

My pleasure 😊

@aderimikelala9730 Жыл бұрын

Yesss! Can't wait for wealthsimple to start offering this so i can put my money in there

@xoReni Жыл бұрын

Me too!!

@khadijahplummerconsulting Жыл бұрын

just dropped this in the main group chat!! will def be opening when it comes to either of my current financial institutions. another great vid!!

@xoReni Жыл бұрын

Thanks for sharing it! 🤍

@keepingupwithzeek Жыл бұрын

I just did my research on this new account and you did not miss a thing. Thank you so much for the informative video ❤

@xoReni Жыл бұрын

Thanks girl! 🤍

@Tonietones Жыл бұрын

nobody can say they've not benefited from this channel

@xoReni Жыл бұрын

I know that’s right!!!

@WhizQueen Жыл бұрын

Thanks for sharing Reni. I didn’t get the chance to research this account yet but you shared everything I needed to know. I’m about to call my bank right away!

@xoReni Жыл бұрын

Glad I could help 🫶🏾🫶🏾 thank you for watching!

@timothyfabelurin6830 Жыл бұрын

Thank you for this.

@xoReni Жыл бұрын

My pleasure! Thanks for watching :)

@CharisMaggieTV Жыл бұрын

Best breakdown of what this new account is about. Answered all my question 💃

@xoReni Жыл бұрын

So glad it was helpful! Thank you for watching :)

@olaidep Жыл бұрын

Thank you

@xoReni Жыл бұрын

You’re welcome!

@TusharJ0shi Жыл бұрын

You should upload more! I loved simple breakdown of info! I will try to get u more viewers myself. Sharing the videos around!!!❤

@xoReni Жыл бұрын

Thank you Tushar 😊

@keepingupwithzeek Жыл бұрын

Makeup on fleek 😻

@xoReni Жыл бұрын

Thanks teacher 😆💜

@nana4lyfe Жыл бұрын

Thanks for this video. Still waiting on one about mortgage interest rates 🙏🏿

@xoReni Жыл бұрын

What would you like to learn about them?

@nana4lyfe Жыл бұрын

@@xoReni the different kinds of rates. Variable/fixed. Advantages/disadvantages of either. Refinancing/HELOC equity refinance etc

@xoReni Жыл бұрын

@@nana4lyfe check out this video about the different types of mortgages: kzfaq.info/get/bejne/lbCcqJWgx6fGYp8.html

@nana4lyfe Жыл бұрын

@@xoReni I've watched that video already. I thought you were gonna follow up with a detailed version to that. Anyway thanks !

@OfficialTashika Жыл бұрын

wow your camera quality is amazing, what camera and lens do you use?

@xoReni Жыл бұрын

Thanks girl! This is the same camera & lens I’ve been using for a while - Canon R6 with a 50mm lens however I started recording the videos on manual mode instead of auto which I think is the game changer 😍

@Trish10-10 Жыл бұрын

Excellent content as always. Thanks Reni. Question: what if I want to own a home in less than 2yrs from today. How would u advise I save since I cannot exceed d 8k maximum annually?

@xoReni Жыл бұрын

My pleasure! I would say maximize this account, then all excess in your TFSA, then the excess in your RRSP 😊

@liaaFC09 Жыл бұрын

Hi Reni thanks for this video I found it very helpful!! Would you still recommend contributing to your TFSA to max it out before contributing to your FHSA?

@xoReni Жыл бұрын

So glad it was helpful! 🥰 I would say FHSA first because it's tax deductible as well!

@Flakkyworld Жыл бұрын

Thanks for this information Réni. Does this apply to international students or temporary migrant in general?

@xoReni Жыл бұрын

Yes it does!

@chinemeremojukwu1225 Жыл бұрын

Thanks so much for this video; I just subscribed.....could you pls do a video on how to invest in stocks and mutual funds using the FHSA via wealthsimple/Questrade ?

@xoReni Жыл бұрын

Thank you for subscribing! Yes, I can do a video on this once wealthsimple opens up the account :)

@JadenHercules Жыл бұрын

Right-side audio isn't working for your video. Might want to fix this.

@xoReni Жыл бұрын

Working on it!

@EkeneAnonyai Жыл бұрын

Thank you so much for sharing! But also what if you don’t have any money to contribute in the first place? I know you said to still open the account to grow your contribution room, but I need them to give me a house for free.99 😭

@xoReni Жыл бұрын

Sis unfortunately our government isn’t that nice 😭😭😭

@SeanKalra Жыл бұрын

Thanks so much for sharing all the information! I had a question regarding the withdrawal, can you transfer the money to your personal account at the time of purchase or does it has to go directly to the seller/lawyer what expenses can it cover, is it just the down payment or can it be used towards legal fees, moving expenses etc.

@xoReni Жыл бұрын

Thanks for watching, Sean! It seems like you can transfer it to your personal account but you first must fill out Form RC725, Request to Make a Qualifying Withdrawal from your FHSA and give it to your FHSA issuer. That;s the only way to withdraw it tax free. I'm not sure about legal fees and moving expenses, that isn't clear. More info: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/withdrawing-money-from-your-fhsa.html

@SeanKalra Жыл бұрын

@@xoReni Thank you!! :)

@oreoluwaayeni1102 Жыл бұрын

Thank you so much Reni, I want to believe the FHSA is per person, for a household the contribution room after 5 years of opening the account is $80k right?

@xoReni Жыл бұрын

Exactly! Or if you buy the home with 3 people, $120k 🙌🏾

@abiolaadenuga4074 Жыл бұрын

What happens to couples. can they open each and what room

@xoReni Жыл бұрын

Yes, they can each open it a long as they are both considered first time home buyers under the plan! They will each get up $8000 each year.

@jatindeepbahl Жыл бұрын

Hi Reni, Love your videos, very knowledgeable. I have 2 questions; 1. Is it applicable for work permit holders. 2. Will we be taxed on our annual salary eg 50k or - 8k, @42k.

@xoReni Жыл бұрын

Thank you! Yes work permit holders can open the account :) Exactly, it reduces how much of your salary is taxed 😊

@jatindeepbahl Жыл бұрын

@@xoReni Is it compulsory to save for 5 years o we can withdraw after 2 years to purchase home.

@xoReni Жыл бұрын

@@jatindeepbahl you can withdraw whenever you want! Withdrawals are tax free if used for a home purchase ☺️

@jatindeepbahl Жыл бұрын

It is only available with large banks, I suppose. Not with EqBank.

@xoReni Жыл бұрын

@@jatindeepbahl only Questrade currently has it available right now, we’ll see which institutions follow suit🙌🏾

@pre.Heaven.Community Жыл бұрын

Hi Reni. two questions please: You talked about having many FHSA accounts but not exceeding the limit? are you talking about the limit per Month for each of them or in total? as in 8000 max for TD and 8000 max for wealth simple max? or 4000$ each per month? also, how is my mom tracked to know that it is to buy a house? will my bank make the payment for me to where I am buying a house or they will give to me and trust that it is for a house? Thank you so much

@xoReni Жыл бұрын

Hey! It is your annual limit across all accounts. So you will have $8000 across TD & WS for 2023. Can you clarify this question about your mom?

@pre.Heaven.Community Жыл бұрын

@@xoReni okay thank you. Sorry I meant money* 😅

@titilayomiogunrinde2820 Жыл бұрын

How long must you leave the money in the account before withdrawing it for home purchase?

@xoReni Жыл бұрын

There is no set length as long as it’s for a qualifying home purchase

@kenazupwah Жыл бұрын

Is there a yearly income limit that would prevent them from opening the account? Or it doesn’t matter on how much a person makes yearly?

@xoReni Жыл бұрын

Doesn’t matter how much 🙌🏾

@kenazupwah Жыл бұрын

@@xoReni Thank you for your response. $40k is pretty small considering the cost of houses in Canada. Quick question. Is it possible to save both down payments in both RRSP and FHSA, and when the time comes, you remove the money from both account for the down payment without any penalties? which should be considered `FIRST TIME HOME BUYING`.

@JadenHercules Жыл бұрын

I'm a bit confused. I was under the impression that tax-deferred accounts are STILL taxable? The TFSA for instance, as far as I am aware, is taxable money.Please confirm!

@xoReni Жыл бұрын

You contribute with after tax money, but withdrawals are tax free.

@JadenHercules Жыл бұрын

@@xoReni I'm not understanding.

@xoReni Жыл бұрын

@@JadenHercules which part?

@TegaOlomu Жыл бұрын

Can I transfer my funds from a TFSA to an FHSA account?

@xoReni Жыл бұрын

Yes, you can!

@angelt103 Жыл бұрын

If I open this account today, with the current markets what would you hold/invest in this account? Mutual Funds, stocks, bonds, gics? I want to maximize this account.

@xoReni Жыл бұрын

When do you plan on purchasing your home

@angelt103 Жыл бұрын

@@xoReni realistically in the next 5-8 years. Depends on how much I can save and what the market looks like then.

@annushankar3032 Жыл бұрын

I would still stay it’s best to invest in TFSA > FHSA > RRSP, just because with the TFSA you can withdraw the funds from the account and regain the contribution room the following year.

@xoReni Жыл бұрын

The TFSA isn’t tax deductible though!

@annushankar3032 Жыл бұрын

@@xoReni that’s fair but my argument is that you can still easily withdraw from the TFSA without having to pay any penalty for any reason, and you’ll regain the contribution room the following year. FHSA is a great investment tool, but if you need the money you’re limited in what you can do if it’s not a home purchase. You can roll it into an RRSP but if you withdraw before 71 you’re paying a tax on it.

@xoReni Жыл бұрын

@@annushankar3032 yup this is for people who want to buy a home 😊

@xoReni Жыл бұрын

@@annushankar3032 yup I mentioned all of this in the video! Thanks for sharing 😊