Modern Day Investing With The New First Home Savings Account (FHSA)
“Modern Day Investing With The New First Home Savings Account (FHSA)”
“Imagine, interest rates are at an all-time low, there’s a global pandemic, we can’t go to Las Vegas for the long weekend, and it takes weeks or months to get a doctor’s appointment. Wait, it’s not 2020!
Flash forward to a new era, where interest rates are at an all time high, the government is trying to lower inflation (yes, that Avocado toast is a commodity), and you forget to charge your car last night. Woah, it’s 2023.
The world is moving quickly and luckily there is great news for First Time Home Buyers! Worried about emptying your childhood piggy bank? Well take the money that you’re hiding under your mattress or your Jordan shoebox, and open up a First Home Savings Account (FHSA)!
Initially launched in April 2023 (yes, you’re a week behind, but it’s alright), eligible First Time Home Buyers can invest their savings into the new FHSA program.
Growing up back in the day (mid-2010s), saving money and budgeting felt like a foreign language to me. As a first generation South Asian Canadian, my father taught me the importance of financial independence starting at an early age. Would I rather have spent my money on Starbucks, new clothes and a new sports car, of course! But I resistantly settled for RRSP savings and a modest Volkswagen Sedan. I made sure I budgeted monthly and had enough savings for when the RRSP deadline approached the following year.
Times have changed and I often wonder what financial knowledge I can pass onto my daughter Gianna. If it was up to her, she would spend her allowance on gummy bears and apple juice! She’s three in July so I have some time, but the world is moving quickly and I want to help educate her with financial knowledge at an early age.
My nephews Gavin (11) and Millen (10) are well aware of the importance of saving and budgeting. These conversations are never easy to have, but being uncomfortable sometimes is the best way to change old habits.
“The Tax-Free First Home Savings Account is a savings account meant for home purchases. It’s a new registered plan that will allow first-time homebuyers to contribute up to $8,000 per year, with a lifetime limit of $40,000.”
The benefits of this program are:
- Help you buy your first home!
- You’ll pay less taxes, Yay!
- FHSA contributions aren’t limited to only a down payment.
Ready to invest in your financial future and save towards your first home purchase?
The requirement of the FHSA program are:
- Canadian resident
- At least 19 years old
- A “First Time Home Buyer”
- Not have used the FHSA to purchase a property in the past
More information on the First Home Savings Account (FHSA) can be found here:
It is always important to contact a local mortgage professional and start to plan your financial future. At Eximus, we have a list of recommended mortgage professionals I would be happy to share.
Fearful or scared that you’re not where you want to be financially? That’s alright. Fear is an illusion, and when it seems scary to “jump,” sometimes it’s best to make that leap forward. Remember, it is important to keep moving two steps forward, even though you may fall back one step from time to time. Yes, skipping the Cactus Club Happy Hour won’t be the end of the world!
Still have questions?
The amazing Real Estate Team at Eximus and other industry professionals are holding a workshop on how to purchase a property in today’s market!
The workshop is on April 22nd from 11:00am to 1:00pm at the Eximus Real Estate Team’s office in beautiful downtown Abbotsford at 302-2600 Gladys Avenue.
Register for the event here https://realestate101-eximus.my.canva.site/
Come with your questions or bring a friend to discuss what purchasing a property in today’s market looks like. Knowledge is power and educating yourself on these topics is a great first step!”
Guest Blogger, Gurp Sidhu
Licensed Realtor, eXp Realty